Damon reorganized his office and purchased a new office desk for $2,600 on March 17, 2016. He wanted to depreciate the desk over a longer period of time, so he chose the Alternative straight-line method and did not claim bonus depreciation. Using the half-year convention, compute his 2016 depreciation deduction. A) $130 B) $195 C) $260 D) $372
Expert Answer
Under straight line method 10 years would be taken
Full year depreciation = Assets Value/ No of years
= $2600/10 years
= $260
Under half year convention, Half of full year depreciation would be taken
$260/2 = $130
So, the answer is (A) $130