Raul purchased a new office computer system on february 15 2

Raul purchased a new office computer system on february 15, 2015, at a cost of $8,300. He would like to use the general depreciation system straight line method to depreciate the system and does not want to claim bonus depreciation. Using the half year convention, compute his 2015 and 2016 depreciation.

a. His 2015 depreciation is $1,660 and his 2016 depreciation is $2,656.

b. His 2015 depreciation is $1,453 and his 2016 is $1,660.

c. His 2015 depreciation is $830 and his 2016 depreciation is $1,660

d. His 2015 depreciation is $691 and his 2016 depreciation is $1,384.

Solution

Asuming Life of the Computer = 5 Years Deprecaition expense per annum = $8,300 X 20% = $1,660 per annum Using Half Year Convention, Deprecoation Expense 2015 = $1,660 / 2 = $830 2016 = $1,660