5.

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore 179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.)

	Date Placed		Original
Asset	in Service		Basis
Machinery	October 25	$	108,000
Computer equipment	February 3	$	48,000
Used delivery truck*	March 17	$	61,000
Furniture	April 22	$	188,000
Total		$	405,000

*The delivery truck is not a luxury automobile.

In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $680,000.

a. What is the allowable MACRS depreciation on Converss property in the current year assuming Convers does not elect 179 expense and elects out of bonus depreciation? (

b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take 179 expense)?