On November 3rd of this year, Kerry acquired and placed into service 7-year business equipment costing $80,000. In addition, on May 5th of this year, Kerry had also placed in business use 5-year recovery property costing $15,000. Kerry did not apply Sec. 179 immediate expensing or bonus depreciation. No other assets were purchased during the year. The depreciation for this year is
A) $3,606.
B) $6,606.
C) $13,576.
D) $14,432.
B) $6,606.
Equipment placed in service in last 3 months of year: $80,000/$95,000 = 84% of all equipment; therefore, the mid-quarter convention must be used on all personal property placed in service during the year.
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