Refer to the facts in Problem 33 and assume that the straight-line method under the alternative MACRS system was elected over the MACRS recovery period for all the assets listed. Based on these facts, compute the 2019 and 2020 depreciation deductions for each of the assets listed. (Ignore bonus depreciation and the Section 179 deduction.)

Problem 33

Compute MACRS depreciation for the following qualified assets for the calendar years 2019 and 2020: (Ignore bonus depreciation and the Section 179 deduction.)

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Asset Business equipment (7-year property) Car Office furniture (7-year property) Building (Office) Year Purchased Cost Salvage Value March 2019 $85,500 $10,000 May 2019 July 2019 14,000 18,050 January 2019 185,000 1,000 3,000 5,000