1. For the properties listed below compute the depreciation taken during the useful life of the property. Assume that all property is post-1986 property. Assign 15 percent of the cost to land for residential and commercial properties. property.

2. Include columns for the applicable AMT depreciation and the accompanying AMT adjustment.

FACT: The AMT adjustment for personal property is the difference between the depreciation taken under MACRS and the amount determined by using the 150% declining balance (DB) method under ADS. The AMT adjustment for real property is the difference between the depreciation taken under MACRS and the amount determined by using the straight line (SL) method under ADS.

PROPERTY COST PLACED IN SERVICE

Tractor unit 35,000 15 Feb

Racehorse over 2 years old 6,000 12 May

Computer 5,000 25 Nov

Luxury Automobile 86,000 15 May 2021

General Purpose Truck 44,000 13 Oct

Office Desk 4,200 5 Jan

Office Safe 10,800 7 Sept

Light Boat 15,000 27 July

Petroleum Refining Installation 126,000 15 June

Residential Rental Building 8,,500,000 26 April

Nonresidential Rental Building 4,000,000 20 Nov

WHILE MAKING THE EXCEL SHEET, INCLUDE THESE COLUMNS

Asset Description, Date Placed in Service, Cost Basis, Recovery Rate, MACRS RECOVERY AMOUNT, MACRS Accumulated Depreciation, Adjusted Basis, AMT Rate, AMT Recovery Amount, AMT Accumulated Depreciation, AMT Adjustment, AMT Adjusted Basis.