5. Identify the three factors reflected in the MACRS tables when the amount of cost recovery is determined.

17. Explain the amortization period of a 179 intangible if the actual useful life is less than 15 years.

18. Harold and Bart own 75% of the stock of Orange Motors. The other 25% of the stock is owned by Jeb. Orange Motors entered into an agreement with Harold and Bart to acquire all of their Orange stock.

In addition, Harold and Bart signed a noncompete agreement, Orange will pay Harold and Bart $15,000 each per year for four years. Identify the relevant tax issues for Orange Motors.

26. McKenzie purchased qualifying equipment for his business that cost $212,000 in 2015. The taxable income of the business for the year is $5,600 before consideration of any 179 deduction. Calculate McKenzies 179 expense deduction for 2015 and any carryover to 2016.