At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year:

	Date	Cost
Asset	Acquired	Basis
Computers	1/30	$	40,000
Office desks	2/15	$	44,000
Machinery	7/25	$	87,000
Office building	8/13	$	416,000

Assuming Anna does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. What is Annas year 1 cost recovery for each asset?

Year 1 Cost Recovery 8,000 $ 6,288 Asset Computer equipment Furniture Pickup truck Commercial building Total $ 14,288 TABLE 1 MACRS Half-Yoar Convention Year 3-Year 33.33% 44.45 14.51 7.41 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year | 20-Year 20.00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 15.00 9.50 7.219 19.20 14.40 S.55 6.677 11.52 12.49 11.52 6.177 11.52 8.93 5.713 5.255 17.49 7.70 8.93 4.888 4.46 4.522 501 4.462 5.90 4.461 5.91 4.462 4.461 4.462 4.461 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the first quarter Year Depreciation Rate for Recovery Period 5-Year 35.00% 26.00 15.60 11.01 11.01 1.38 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period Year 5-Year 7-Year 25.00% 17.85% 30.00 23.47 18.00 16.76 11.37 11.97 11.37 8.57 4.26 8.57 8.87 3.34 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Year Depreciation Rate for Recovery Period 5-Year 15.00% 34.00 20.40 12.24 11.30 7-Year 10.71% 25.51 18.22 13.02 9.30 8.55 3.56 5.53 7.06 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Year 7-Year 3.57% 27.55 Depreciation Rate for Recovery Period 5-Year 5.00% 38.00 22.50 13.68 10.94 9.58 19.68 14.06 10.04 8.73 8.73 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Year | | 1 3.485% 3.636 3.637 3.636 3.637 3.636 3.637 3 2.879% 3.636 3.637 3.636 9 1.061% 3.636 3.636 12 0.152% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.637 3.636 2 3.182% 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 2.273 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 4 2.576% 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 2.879 Month Property Placed in Service 5 6 2.273% 1.970% 1.667% 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.182 3.485 3.636 0.152 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 S 1.364% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 0.455 10 0.758% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.061 3.637 11 0.455% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.364 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.667 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 0.758 3.637 3.636 3.636 3.637 3.637 3.636 1.97 3.636 2.576 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in Service before May 13,1993) Year 12 11 0.397% 1 3.042% 3.175 3.175 3.174 3.175 3 2.513% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 9 0.926% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 2 2.775% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.984 2.249% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month Property Placed in Service 5 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 2.778 3.042 3.175 8 1.190% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.926 3.174 3.175 0.132% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.455 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.174 3.175 3.175 3.175 3.174 3.175 3.174 1.720 3.174 3.175 3.174 2.249 3.175 3.174 3.175 3.174 3.175 0.661 3.174 3.175 2.513 3.175 3.174 0.397 0.132 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in Service on or after May 13, 1993) Month Property Placed in Service Year 5 1 2.461% 2.564 0.107 2 2.247% 2.564 0.321 3 2.033% 2.564 0.535 4 1.819% 2.564 0.749 1.605% 2.564 0.963 1.391% 2.564 1.177 8 0.963% 2.564 1.605 1.177% 2.564 1.391 9 0.749% 2.564 1.819 10 0.535% 2.564 2.033 239 40 11 0.321% 2.564 2.247 12 0.107% 2.564 2.461 Year 1 Cost Recovery 8,000 $ 6,288 Asset Computer equipment Furniture Pickup truck Commercial building Total $ 14,288 TABLE 1 MACRS Half-Yoar Convention Year 3-Year 33.33% 44.45 14.51 7.41 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year | 20-Year 20.00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 15.00 9.50 7.219 19.20 14.40 S.55 6.677 11.52 12.49 11.52 6.177 11.52 8.93 5.713 5.255 17.49 7.70 8.93 4.888 4.46 4.522 501 4.462 5.90 4.461 5.91 4.462 4.461 4.462 4.461 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the first quarter Year Depreciation Rate for Recovery Period 5-Year 35.00% 26.00 15.60 11.01 11.01 1.38 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period Year 5-Year 7-Year 25.00% 17.85% 30.00 23.47 18.00 16.76 11.37 11.97 11.37 8.57 4.26 8.57 8.87 3.34 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Year Depreciation Rate for Recovery Period 5-Year 15.00% 34.00 20.40 12.24 11.30 7-Year 10.71% 25.51 18.22 13.02 9.30 8.55 3.56 5.53 7.06 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Year 7-Year 3.57% 27.55 Depreciation Rate for Recovery Period 5-Year 5.00% 38.00 22.50 13.68 10.94 9.58 19.68 14.06 10.04 8.73 8.73 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Year | | 1 3.485% 3.636 3.637 3.636 3.637 3.636 3.637 3 2.879% 3.636 3.637 3.636 9 1.061% 3.636 3.636 12 0.152% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.637 3.637 3.636 2 3.182% 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 2.273 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 4 2.576% 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 2.879 Month Property Placed in Service 5 6 2.273% 1.970% 1.667% 3.636 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.182 3.485 3.636 0.152 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 S 1.364% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 0.455 10 0.758% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.061 3.637 11 0.455% 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.364 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 1.667 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 0.758 3.637 3.636 3.636 3.637 3.637 3.636 1.97 3.636 2.576 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in Service before May 13,1993) Year 12 11 0.397% 1 3.042% 3.175 3.175 3.174 3.175 3 2.513% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 9 0.926% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 2 2.775% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.984 2.249% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Month Property Placed in Service 5 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 2.778 3.042 3.175 8 1.190% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 10 0.661% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 0.926 3.174 3.175 0.132% 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.455 3.175 3.174 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.174 3.175 3.175 3.175 3.174 3.175 3.174 1.720 3.174 3.175 3.174 2.249 3.175 3.174 3.175 3.174 3.175 0.661 3.174 3.175 2.513 3.175 3.174 0.397 0.132 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in Service on or after May 13, 1993) Month Property Placed in Service Year 5 1 2.461% 2.564 0.107 2 2.247% 2.564 0.321 3 2.033% 2.564 0.535 4 1.819% 2.564 0.749 1.605% 2.564 0.963 1.391% 2.564 1.177 8 0.963% 2.564 1.605 1.177% 2.564 1.391 9 0.749% 2.564 1.819 10 0.535% 2.564 2.033 239 40 11 0.321% 2.564 2.247 12 0.107% 2.564 2.461