1.

Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporations 2016 depreciation expense (ignore 179 expense and bonus depreciation for this problem).

Asset	Date acquired		Date sold	Convention	Original Basis
Furniture (7 year)	5/12/12		7/15/16	HY	$60,000
Machinery (7 year)	3/23/13		3/15/16	MQ	$72,000
Delivery truck* (5 year)	9/17/14		3/13/16	HY	$20,000
Machinery (7 year)	10/11/15		8/11/16	MQ	$280,000
Computer (5 year)	10/11/16		12/15/16	HY	$80,000
*Used 100 percent for business.