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Problem 10-54 (LO 10-2; LO 10-3)

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2and Table 5.)

	Date Placed		Original
Asset	in Service		Basis
Machinery	October 25	$	70,000
Computer equipment	February 3	$	10,000
Used delivery truck*	March 17	$	23,000
Furniture	April 22	$	150,000
Total		$	253,000

*The delivery truck is not a luxury automobile.

In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $300,000.

Problem 10-54 Part b

b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)

Answer 1

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