1.

Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her business. What is the depreciable basis that Brittany should use in her business for each asset, given the following information?

Asset Purchase Price FMV at Time Converted

Computer $2,500 $600

Printer $300 $150

Desk $1,200 $800

File cabinet $200 $225

2.

Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore 179 expense and bonus depreciation for this problem):

Asset		Placed in Service Date	Original Basis
Machinery		October 25	$80,000
Computer Equipment		February 3	$10,000
Used Delivery Truck*		March 17	$23,000
Furniture		April 22	$160,000
Total			$273,000

*The delivery truck is not a luxury automobile.

What is the allowable MACRS depreciation on Convers property in the current year?