During 2010, Mary Moser purchases the following items for use in her business:

Manufacturing equipment

(7-year property, purchased August 1)

$ 12,000 Office furniture

(7-year property, purchased December 15)

2,000 Office building, land is accounted for separately

(purchased March 30)

175,000 Assume that Mary uses the accelerated depreciation method under MACRS and elects out of bonus depreciation for 2010.

a. Use Form 4562 on page 7-17 to report Mary’s depreciation deduction for 2010.

b. Calculate Mary’s depreciation deduction on the assets for 2011 (Year 2).

Depreciation Deduction 7-year property $ ____________ Office building $ ____________