[-12 Points] DETAILS BRECMBC9 17.11.002. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Suppose a computer software developer for a certain company purchased a computer system for $85,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance (a) What was the basis for depreciation (in $) of the computer system? (See Table 17.4.) S (6) What was the amount (in %) of the first year's depreciation using MACRS? (See Table 17-1 and Table 17-2) TABLE 17-4 Special Depreciation Allowance Certain Qualified Asset Placed into Service September 11, 2001-May 5, 2003 May 6, 2003-January 1, 2005 December 31, 2007 September 27, 2017 September 28, 2017 December 31, 2022 Special Allowance 3090 505 509 100 OP et/recmbc9/17-table-1.pdf Fit to page o Page view | A Read the + 9 ARMACRS Property Classes (Recovery Period) General Depreciation System 7-Year Property years) 5-Year Property (5 years) -Year Property (3 years) Omice furniture and fixtures Automobiles and taxis Over the road tractors Railroad cars and engines Huses and trucks Some horses and hops Commercial airplanes Computers and peripherals Special handling devices for the Assets used in the manufacture of wood, Omce machinery manufacture of food and beverages Specialty tools used in the manufacture Breeding or dairy cattle, sheep and goals pulp, and paper products Airplanes (except those in commercial use) Assets used in printing and publishing Assets used in the production of tobacco, Trailers and trailer-mounted containers Specialty tools used in the manufacture of finished products made of plastic, Assets used in construction leather, stone, and steel products berglass and metal Assets used in the manufacture of knitted Assets used in the production of sporting goods, textile yarns, carpets, medical goods, toys, jewelry, and musical and dental supplies, chemicals, and Instruments clectronic components Assets used in theme and musement Assets used in radio and television parks, theaters, concert halls, and broadcasting, and CATV miniature golf courses 16-Year Property (10 years) 15-Year Property (15 years) 20-Year Property (20 years) Vessels, bares, and up Depreciate improvements made to land, Harm buildings Single purpose agricultural structures such as shrubbery, fences, roads, and Railroad structures and improvements Trees and Vines bearing fruits or Communication cable and long-line Assed in the production of grain, agar Assets used to manufacture cement systems and vegetable oil products Gas and petroleum utility pipelines Water, clectric, gas, and steam utility Als used in petroleum refining Industrials and check penertion and plants and equipment As used in the manufacture and repair of or distribution systems bes, marine delling is Water taxis and ferry boats 25-Year Property (25 years) Resident Rental Property (275 years) Nemesidential Real Property (19 years) Municipales This is an uilding or structure, such as This is property such as an office Certain water til property integrata metal home including a mobile home), in holding a sore of a warehouse that of its gross rental income for the las is not residential rental property year is from dwelling units. A dwelling is house of an aparted to provide living commodations RE Fit to page D Page View All Roa 20-year 3.7509 7.219 6.677 6.177 5.713 TABLE 172 Cost Recovery Percentage Table MACRS Recovery Depreciation Rale for Property Class Year 3-year 5-year 7-year 10-year 15-year 1 20.000 14.29% 10.00% 5.0096 2 44.45 32.00 24.49 18.00 9.50 3 14.81 19.20 17.49 14.40 8.55 4 7.41 11.52 12.49 11.52 7.70 5 11.52 8.93 9.22 6 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 9 6.56 5.91 10 6.55 5.90 11 3.28 5.91 12 5.90 13 5.91 14 5.90 15 5.91 16 2.95 17 18 19 20 21 5.25 4.88 4522 4.461 4.462 4.461 4.461 4.662 4.461 4.62 4.461 [-12 Points] DETAILS BRECMBC9 17.11.002. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Suppose a computer software developer for a certain company purchased a computer system for $85,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance (a) What was the basis for depreciation (in $) of the computer system? (See Table 17.4.) S (6) What was the amount (in %) of the first year's depreciation using MACRS? (See Table 17-1 and Table 17-2) TABLE 17-4 Special Depreciation Allowance Certain Qualified Asset Placed into Service September 11, 2001-May 5, 2003 May 6, 2003-January 1, 2005 December 31, 2007 September 27, 2017 September 28, 2017 December 31, 2022 Special Allowance 3090 505 509 100 OP et/recmbc9/17-table-1.pdf Fit to page o Page view | A Read the + 9 ARMACRS Property Classes (Recovery Period) General Depreciation System 7-Year Property years) 5-Year Property (5 years) -Year Property (3 years) Omice furniture and fixtures Automobiles and taxis Over the road tractors Railroad cars and engines Huses and trucks Some horses and hops Commercial airplanes Computers and peripherals Special handling devices for the Assets used in the manufacture of wood, Omce machinery manufacture of food and beverages Specialty tools used in the manufacture Breeding or dairy cattle, sheep and goals pulp, and paper products Airplanes (except those in commercial use) Assets used in printing and publishing Assets used in the production of tobacco, Trailers and trailer-mounted containers Specialty tools used in the manufacture of finished products made of plastic, Assets used in construction leather, stone, and steel products berglass and metal Assets used in the manufacture of knitted Assets used in the production of sporting goods, textile yarns, carpets, medical goods, toys, jewelry, and musical and dental supplies, chemicals, and Instruments clectronic components Assets used in theme and musement Assets used in radio and television parks, theaters, concert halls, and broadcasting, and CATV miniature golf courses 16-Year Property (10 years) 15-Year Property (15 years) 20-Year Property (20 years) Vessels, bares, and up Depreciate improvements made to land, Harm buildings Single purpose agricultural structures such as shrubbery, fences, roads, and Railroad structures and improvements Trees and Vines bearing fruits or Communication cable and long-line Assed in the production of grain, agar Assets used to manufacture cement systems and vegetable oil products Gas and petroleum utility pipelines Water, clectric, gas, and steam utility Als used in petroleum refining Industrials and check penertion and plants and equipment As used in the manufacture and repair of or distribution systems bes, marine delling is Water taxis and ferry boats 25-Year Property (25 years) Resident Rental Property (275 years) Nemesidential Real Property (19 years) Municipales This is an uilding or structure, such as This is property such as an office Certain water til property integrata metal home including a mobile home), in holding a sore of a warehouse that of its gross rental income for the las is not residential rental property year is from dwelling units. A dwelling is house of an aparted to provide living commodations RE Fit to page D Page View All Roa 20-year 3.7509 7.219 6.677 6.177 5.713 TABLE 172 Cost Recovery Percentage Table MACRS Recovery Depreciation Rale for Property Class Year 3-year 5-year 7-year 10-year 15-year 1 20.000 14.29% 10.00% 5.0096 2 44.45 32.00 24.49 18.00 9.50 3 14.81 19.20 17.49 14.40 8.55 4 7.41 11.52 12.49 11.52 7.70 5 11.52 8.93 9.22 6 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 9 6.56 5.91 10 6.55 5.90 11 3.28 5.91 12 5.90 13 5.91 14 5.90 15 5.91 16 2.95 17 18 19 20 21 5.25 4.88 4522 4.461 4.462 4.461 4.461 4.662 4.461 4.62 4.461
