A company purchased a new machine in 2020 at a cost of $297,000. They also paid a delivery fee of $5000 when the machine arrived. The machine has a useful life of 10 years, but will be depreciated using MACRS overs its 10-year property class life.

a. What is the cost basis of the machine?

b. Use the table below to answer the following questions. Round to the nearest integer. For example, if your solution is $1,234.56, please enter 1235.

EOY	10-year property %	Dn	Bn
0
1
2	Blank A
3		Blank B
4			Blank C
5		Blank D
6			Blank E
7
8		Blank F
9
10			Blank G

i. What is the value in Blank A?

ii. What is the value in Blank B?

iii. What is the value in Blank C?

iv. What is the value in Blank D?

v. What is the value in Blank E?

vi. What is the value in Blank F?

vii. What is the value in Blank G?

c. If you have 10 years MACRS property, it will be fully depreciated in ____ years.

d. In the year an asset is purchased and disposed of you can take a _____ years depreciation.

Full

Half

e. If you sell the machine at the end of year 4, what would the depreciation allowance be? Answer to the nearest dollar.

f. What is the book value assuming you sell the machine at the end of year 4? Answer to the nearest dollar.

g. If the asset is disposed at the end of year 4 for $0, which of the following statements is true? Select all that apply.

This is loss

This is depreciation recapture

This is capital gain

There is no gain or loss

The taxable income is unaffected

The taxable income is decreased

The taxable income is increased

h. If the machine is sold at the end of year 4 for $160,000, which of the following statements is true? Select all that apply.

This is loss

This is depreciation recapture

This is capital gain

There is no gain or loss

The taxable income is unaffected

The taxable income is decreased

The taxable income is increased

i. What is the magnitude of gains or losses in the previous question? If there is no gain or losses, please enter 0. Otherwise, give your answer in nearest dollar.

j. If the asset is disposed after 11 years for $305,000. Which of the following statements is true? Select all that apply.

This is loss

This is depreciation recapture

This is capital gain

There is no gain or loss

The taxable income is unaffected

The taxable income is decreased

The taxable income is increased

k. What is the magnitude of gains or losses in the previous case? If there is no gain or losses, please enter 0. Otherwise, give your answer in nearest dollar.