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A large profitable corporation purchased a small jet plane for use by the firm's engineers. The plane cost $1,800,000. Use Tables 11-2 and 11-3 in

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A large profitable corporation purchased a small jet plane for use by the firm's engineers. The plane cost $1,800,000. Use Tables 11-2 and 11-3 in the text or slides. Compute the depreciation for year 2 using MACRS. $345,600 $539,613 $576.000 $440,820 TABLE 11-2 MACRS GDS Property Classes Property Class Personal Property (all property except real estate) 3-year property Special handling devices for food and beverage manufacture Special tools for the manufacture of finished plastic products, fabricated metal products, and motor vehicles Property with ADR class life of 4 years or less 5-year property Automobiles and trucks Aircraft (of non-air-transport companies) Equipment used in research and experimentation Computers Petroleum drilling equipment Property with ADR class life of more than 4 years and less than 10 years 7-year property All other property not assigned to another class Office furniture, fixtures, and equipment Property with ADR class life of 10 years or more and less than 16 years 10-year property Assets used in petroleum refining and certain food products Vessels and water transportation equipment Property with ADR class life of 16 years or more and less than 20 years 15-year property Telephone distribution plants Municipal sewage treatment plants Property with ADR class life of 20 years or more and less than 25 years 20-year property Municipal sewers Property with ADR class life of 25 years or more 20-Year Property TABLE 11-3 MACRS Depreciation for Personal Property: Half-Year Convention Applicable Percentage for Property Class Recovery 3-Year 5-Year 7-Year 10-Year 15-Year Year Property Property Property Property Property 1 33.33 20.00 14.29 10.00 5.00 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 6.93 6 5.76 8.92 7.37 6.23 3.750 7.219 6.677 6.177 5.713 5.285 7 8 9 8.93 4.46 6.55* 6.55 6.56 5.90* 5.90 5.91 4.888 4.522 4.4628 10 6.55 3.28 11 12 5.90 5.91 5.90 4.461 4.462 4.461 13 14 15 5.91 5.90 5.91 4.462 4.461 4.462 2.95 16 17 18 4.461 4.462 4.461 19 20 21 4.462 4.461 2.231

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