Question

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

	Date Placed		Original
Asset	in Service		Basis
Machinery	October 25	$	76,000
Computer equipment	February 3		14,500
Used delivery truck*	August 17		27,500
Furniture	April 22		157,500

*The delivery truck is not a luxury automobile.

a. What is the allowable MACRS depreciation on Evergreen’s property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.)

b. What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation?

Answer 1