12. During 2010, Palo Fiero purchases the following property for use in his manufacturing business:

Item Date Acquired Cost Manufacturing equipment June 2, 2010 $ 35,000 Office furniture November 15, 2010 4,500 Office computer September 18, 2010 3,500 Passenger automobile (used 90 percent for business) May 31, 2010 35,000 Warehouse March 23, 2010 Building 165,000 Land 135,000 Palo uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense or take bonus depreciation. Use Form 4562 on pages 7-37 and 7-38 to report Palo’s depreciation expense for 2010.