Ethan's Eggroll House, a calendar year corporation, purchased a new computer and printer in January for $1,500. In February, the business purchased a new oven for $1,200. No other assets were purchased during the year. How much depreciation will be taken on these items in the second year of service if the taxpayer does NOT elect to use Section 179 and does NOT use bonus depreciation

depreciation for year 2 = $773.88

Explanation:

the MACRS depreciation schedule for computer equipment is:

5 year class life (half year convention)

year               depreciation %        assets' cost            depreciation expense

1                             20%                     $1,500                      $300

2                            32%                     $1,500                      $480

3                            19.20%                 $1,500                      $288

4                            11.52%                  $1,500                      $172.80

5                            11.52%                  $1,500                      $172.80

6                            5.76%                   $1,500                      $86.40

the MACRS depreciation schedule for an oven is:

7 year class life (half year convention)

year               depreciation %        assets' cost            depreciation expense

1                             14.29%                 $1,200                      $171.48

2                            24.49%                $1,200                      $293.88

3                            17.49%                 $1,200                      $209.88

4                            12.49%                 $1,200                      $149.880

5                            8.93%                  $1,200                      $107.16

6                            8.92%                  $1,200                      $107.04

7                            8.93%                  $1,200                      $107.16

8                            4.46%                  $1,200                      $53.52

depreciation for year 2 = $480 + $293.88 = $773.88

be mindful of your own reaction,use positive self-talk,   and debrief.