Question

What is the allowable depreciation on Evergreen property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation?

Answer 1

The allowable depreciation on Evergreen property in the current year using the straight-line depreciation method.

Step-by-step explanation:

The allowable depreciation on Evergreen property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation, would be the straight-line depreciation method. To calculate the annual depreciation expense, you would divide the cost of the property by its useful life. The useful life of the property is determined by the IRS and depends on the type of property involved. For example, if the cost of the property is $100,000 and the useful life is 20 years, the annual depreciation expense would be $5,000.