Assume that Sivart Corporation has 2021 taxable income of $1,750,000 for purposes of computing the $179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Asset Machinery Computer equipment Delivery Truck-used Furniture Total Placed in Service June 12 February 10 August 21 April 2 Basis $ 1,440,000 70,000 93,000 310,000 $ 1,913,080 a. What is the maximum amount of $179 expense Sivart may deduct for 2021? Maximum 5179 experise deductible b. What is the maximum total depreciation ($179, bonus, MACRS) that Sivart may deduct in 2021 on the assets it placed in service in 2021 Minimum total depreciation deduction (including 6179 expenses Table I MACRS Half-Year Convention 20-Year 3.750% Year 1 7.219 Year 2 Year 3 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 6.677 Year 4 6.177 Year 5 5.713 Year 6 5.285 Year 7 4.888 4.46 6.55 5.90 4.522 Year 8 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 Year 11 3.28 5.91 4.461 4.462 4.461 Year 12 5.90 Year 13 5.91 5.90 Year 14 4.462 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 4.462 Year 19 Year 20 Year 21 4.461 2.231 TABLE 2a MACRS Mid Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 8.87 Year 7 8.87 Years 3.34 426 TABLE 2c MACRS Mid-Quarter Convention: For pronar TABLE 2c MACRS Mid Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Years 7.64 Month 9 1 061% 3636 3.636 3.637 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2 273% 1970% 1.667% Year 29 3.636 3.636 3.636 3.636 3636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3632 3.637 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3637 3 637 3637 3637 3.636 Year 13 3.636 3.636 3.636 3636 3.636 3.636 3.637 Year 14 3637 3637 3.637 3.637 3,637 3.637 3.636 Year 15 3.636 3.636 3.636 3.636 3636 3.636 3 637 Year 16 3.637 3 637 3.637 3637 3.632 3.637 3.636 Year 17 3.636 3636 3636 3636 3.636 3636 3.632 Year 18 3.637 3637 3.637 3.637 3637 3637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3636 1.637 Year 20 3637 3.637 3.637 3.637 3.637 3.637 Year 21 3.636 3.636 3.636 3.636 3.636 3636 3637 3637 Year 22 3.637 3.637 3637 3.637 3637 3636 3636 3.636 3636 Year 23 3637 3636 3.636 3636 3.637 3.637 3637 Year 24 1616 3637 3.637 3.637 3636 Year 25 3636 3.636 3.636 3.636 3.636 1636 3.637 3632 Year 26 3637 3637 3637 3637 1637 3.636 3.636 Year 27 3636 3636 3636 3.636 Month 8 1.364% 3.636 3.636 3637 3 636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3636 3636 3.637 3.636 3637 3.636 3637 3636 3.637 3.636 1637 3.636 3637 9.636 16) 3636 3617 3.636 3637 Month 10 Month II Month 12 0.758% 0.455% 0.15296 3.636 3.636 3.636 3636 3.636 3637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3636 3636 3.636 3.637 3637 3.637 3636 3.636 3.636 1 637 3.637 3.637 3.636 3.636 3636 3637 8637 3.637 3636 1636 3636 3637 3637 3637 1636 3.636 3.636 3697 3632 3637 3.636 1636 3637 3.632 2637 1636 3836 1636 3637 3637 3.63 3616 3.636 3637 3636 3637 3.636 3637 3.632 75F Cloudy 3637 3637 3.636 3637 3.636 1.97 Year 25 Year 26 Year 27 Year 28 Year 29 3.636 3.637 3.636 2273 3.636 3.637 3.636 2.576 3636 3.637 3636 2879 3.636 3.637 3.636 3.182 3.636 3637 3.636 1485 3.636 3.637 3.637 3636 3.637 3.636 0.455 3.637 3636 3.637 3636 0.758 3.63 3.636 3.637 3.636 1061 3.637 3.636 3637 3.636 1564 3.636 3.637 U 3636 3636 0 152 1667 12V Mouth 0397 3175 3.175 3.120 Meath 12 61324 1175 1115 1.115 11110 3175 3174 114 Mouth 10 0.6615 3.175 3.175 3.175 1174 3:175 1114 3.175 3.11 1.115 3114 119 1110 SCIE TABLE 4 Nonresidential Real Property Mid Mouth Care Straight line 313 Year (first placed in rice before May 13, 1991) Month Property Placed in Service Month 1 Month 2 Month Meath 4 Maths Meath 6 Meath Meaths Month Year! 100 2.77895 2.5135 22.09% 1989 1720% 1455% 11907 0.926 Year 27 3.175 3.175 3.175 3175 3175 1175 3.175 1115 Years 3.175 1174 3.175 3175 1176 3175 3.175 175 Year 3174 3.15 3.174 3175 3.174 3.170 3.575 3.17 Year 10 3.175 3.174 3.175 3:17 3.173 3.174 1175 1114 3:17 Year 11 3.174 3.175 3174 3115 1176 3175 3123 3174 Year 12 3.175 3174 3.175 1114 31 117 3.174 1 Year 13 3:174 3.175 3174 3.135 3:174 3.15 14 3.175 3:114 Year 14 3.175 3.174 3.175 3.174 3175 3.173 317 1115 Year 15 3.174 1.175 1174 313 1114 111 3116 1114 Year 16 3175 3114 3.175 3114 1175 3174 315 5175 Year 17 3.114 135 3174 3110 1125 314 3.11 1 Year 15 3.175 3.174 31 3114 3114 175 111 311 Year 19 3.174 3.175 3174 313 3174 317 3116 115 1114 Year 20 3.125 3174 313 3175 3114 3.IT 3175 Vear 21 1114 3.175 3114 3:15 3174 11 3178 1195 11 Year 12 3.175 FIT 3175 3174 111 3113 1118 3.113 3174 Year 23 3175 3194 3115 3174 3115 1113 319 3115 3.17 Year 24 1174 194 314 311 3115 31 3195 1114 Year 35 3144 311 3114 310 175 3174 113 3124 3195 311 LETE CLIE NIE CLIE 5124 3:11 1114 517 SIN 11 SEE TE 3114 31 1114 17 3.174 3114 111 3118 111 3118 111 3114 31 CATE CLIE 17 75% Cloudy A 0 pu LA o There to search 1 110 PM 25 Coudy 60 960 0197 011 0911 AE ST TE 1990 21 HT HE TO 315 114 OLI VE SLEC SERE 11 JI 11 3174 TIE SEE SCHE VEC 5174 3:17 3.175 WEL PLIE SLIE NE SITE LE SIE Vear Year 32 Year 1 Year 30 Year 29 Year 28 Year 27 Year 26 NIE SIE PIE SLEE VE SLI TIE SLI PIE SLIE TIE SLIE NE SZE SET PRE RE E TIE 3.174 3.175 3174 SEE RE CUTE 3.175 HIE SLEE TIE TIE PE SEE 3170 3.175 3:174 3.175 3174 3.174 3.175 SLIE Mouth 10 051346 TABLE S Nonresidential Real Property Mid Mouth Convention Straight Line 19 Years for assets placed in service en or after May 13, 1993) Mouth Property Maced in Service Mesthi Month 2 Month Month 4 Months Month 6 Most 7 Meath Month Year1 2-10194 2011 1.1994 1605 1191 119 0.9614 0.7499 Year 19 2.564 2564 2561 2564 2564 2564 2564 3564 2.64 Year 40 0.107 0.321 OSS 0719 0.965 1177 1.391 1s 1819 Month 11 03319 2560 2247 Math 12 DION 2.564 2461 2011