15. Award: 2.00 points Chaz Corporation has taxable income in 2018 of $439,000 for purposes of computing the $179 expense and acquired the following assets during the year Placed in Service Asset Basis Office furniture Computer equipment Delivery truck Qualified improvement property Total September 12 $ 781,000 908,000 54,000 30 1,509.000 February 10 August 21 $ 3,252,000 What is the maximum total depreciation deduction that Chaz may deduct in 2018? (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.) Maximum total depreciation deduction rev: 12 13 2018 Qc CS-151658 References Problem Learning Objective: 10-02 Determine the applicable cost recovery depreciation) life, method, and convention for tangible personal and real property and the deduction allowable under basic MACRS Table I MACRS Half-Year Convention Depreciation Rate for Recovery Period 7-Year10-Year15-Year 20-Year 29% 10.00% 5.00% 3.750% 3-Year5-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 3901 20.00% 14. 32.00 19.20 11.52 11.52 18.00 14.40 11.52 9.22 7.37 9.50 8.55 7.70 6.93 6.23 7.219 44.45 14.81 7.41 24.49 17.49 49 8.93 8.92 8.93 4.46 6,677 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Year 8 Year 9 6.56 Year 10 3.28 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 4.462 4.461 4.462 4.461 2.231 ear 18 ear 19 ear 21 410/2019 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 7-Year 25 00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 5-Year 35.00% Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.60 11.01 1.38 TABLE 2b MACRS Mid-Quarter Convention: For property placed i service during the second quarter Depreciation Rate for Recovery Period 5-Year 25.00% 30.00 18.00 11.37 11.37 4.26 7-Year 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 Year 1 Year 2 Year 4 Year 5 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 7-Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 5-Year 15.00% 34.00 20.40 12.24 11.30 7.06 10.71% 25.51 18.22 13.02 9.30 8.85 8.86 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 10e/ch10 table2.htm TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Meath Property Placed in Service Mouth1 Month2 Monch3 Month Moach S MothMonth 7 Mnth Month9 Month 10 Month 11 Monch1 1.364% 1001% 0758% 0455% 0.15 3.485% 31 82% 2 879% 2.576% 2 273% 1 067% Year 2-93.636 Year 10 3637 3.636 3,637 636 3.63 3.636 636 1637 1636 3.637 1.637 ,637 3,636 Year 13 3.616 3.637 Year 1 636 3.637 Year 17 3,616 636 3.636 3.637 3.636 3.636 3.636 .637 3.636 Year 19 3.36 636 3.637 3.636 3.637 3.636 3.637 3.637 Year 213.636 Year 223,637 3.637 .63 3.636 .637 3.636 3.637 3.636 3637 3.636 3.637 3.636 3.636 3.636 3.637 .636 3.637 636 3637 3.636 3.637 3.636 .637 Year 24 3637 Year 25 3.636 ear 26 3.637 Year 27 3636 Year 28 Year 29 3,636 .637 3.636 3.637 .636 0 758 .636 3.637 3.636 .637 3.636 3,637 3.636 2.576 3.636 3.637 3.636 .637 636 .637 .636 667 3.637 3.637 3.636 3.637 3.637 .637 1.97 2.273 1.061 1.364 placed in service before May 13, 1993) TABLE 4 Nonresidencial Real Property Mid-Menth Convvntiom Stralight Line-315 Years (for assets Month Property Flaced in Service Menth 6 Manth 9 Month 2778% 2249% 3.173 3.175 3.175 3.175 3.174 3.174 Year 18 3.175 3.174 3.173 .174 175 3175 3.175 ,174 3175 Year 21 3.175 3.175 .175 3.175 Year 23 Year 24 Year 25 Year 26 ear 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 3.175 3.175 174 .175 .174 3.175 .175 3.175 3.175 3.174 3.175 3.174 3.174 .175 3.174 .175 3.175 3.174 3.174 3.175 3.174 3.173 3.175 3.175 3.173 3.042 1.720 2.249 2.778 .175 3.174 0397 0.661 0.92 TABLE S Nonresidential Real Preperty Mid-Moath Convention StraightLJn39 Years (or assets placed in service on or aner May 13, 1993) Month Pruperty Placed in Service Month & 1 391% 2.564 1,177 7Month 8 0 963% Month 9 749% 2.564 Month4 Month 5 Month 2 2 247% Year I Year 2-19 2 461% 2 564 2 033 2 564 0 535 1 605% 2 564 0.963 0.535 2.564 033 2 5642.364 2 564 0.749 1.391 1605