A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2015. The cost basis was $340,000. The plan is to use the equipment and dispose it after about 8 years service. a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2017, instead of 2023, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreciations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). years. a). The GDS recovery period is The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, $ 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ - X More Info 4 5 6 6 4 4 Year 1 2 10 10 14 16 10 10 14 16 3 4 va voor overwoor 6 6 5 6 9 10 9 10 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-yeara 5-yeara 7-yeara 10-yeara 15-yearb 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 7 Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 8 9.5 14 9.5 14 9 10 20 20 12 12 6 6 11 12 13 14 7 5 7 7 10 12 15 12 10 18 28 35 10 10 18 28 35 10 16 17 Print Done Print Done All parts showing Clear All Check Answer A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2015. The cost basis was $340,000. The plan is to use the equipment and dispose it after about 8 years service. a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2017, instead of 2023, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreciations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). years. a). The GDS recovery period is The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, $ 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ - X More Info 4 5 6 6 4 4 Year 1 2 10 10 14 16 10 10 14 16 3 4 va voor overwoor 6 6 5 6 9 10 9 10 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-yeara 5-yeara 7-yeara 10-yeara 15-yearb 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 7 Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 8 9.5 14 9.5 14 9 10 20 20 12 12 6 6 11 12 13 14 7 5 7 7 10 12 15 12 10 18 28 35 10 10 18 28 35 10 16 17 Print Done Print Done All parts showing Clear All Check
