Question

Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem):

	Placed in		Original
Asset	Service Date		Basis
Machinery	21-Oct	$	91,500
Computer equipment	29-Jan		17,100
Used delivery truck*	8-Mar		26,000
Furniture	22-May		218,000
Total		$	352,600

*The delivery truck is not a luxury automobile.

What is the allowable MACRS depreciation on Convers’s property in the current year? (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.)

Answer 1

Compute the allowable MACRS depreciation on convers’ property in the current year:
Asset	Placed in service	Quarter	Amount	Rate	Depreciation
			1	2	(3) = (1)*(2)
Machinery	21-Oct	2nd	91,500.00	17.85%	16,332.75
Computer Equipment	29-Jan	3rd	17,100.00	15.00%	2,565.00
Used truck delivery	08-Mar	3rd	26,000.00	15.00%	3,900.00
Furniture	22-May	4th	2,18,000.00	3.57%	7,782.60
Total			3,52,600.00		30,580.35