MRT, a calendar year corporation, placed the following assets in service this year:

a. Compute MRT€™s MACRS depreciation with respect to the assets placed in service this year. Assume MRT does not elect to use first-year bonus depreciation or Section 179.
b. In December, MRT decided to purchase $285,000 of additional equipment. The corporation could buy the equipment and place it in service before year-end, or it could postpone the purchase until January. What effect does this decision have on MRT€™s depreciation with respect to the assets already in service?

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Recovery Period Date Placed in Service Asset Initial Cost Manufacturing 259,000 7years April 23 7 years 5 years equipment Furniture and fixtures 56,000 May 2 Transportation equipment 225,000 120,000 September 3 December1 Office equipment 7 years