At the beginning of the year, Poplock began a calendar-year dog boarding business called Griffs Palace. Poplock bought and placed in service the following assets during the year:

Asset Date Acquired Cost Basis

Computer equipment 3/23 $5,000

Dog grooming furniture 5/12 $7,000

Pickup truck 9/17 $10,000

Commercial building 10/11 $270,000

Land (one acre) 10/11 $80,000

Assuming Poplock does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions:

a) What is Poplocks year 1 depreciation deduction for each asset?

b) What is Poplocks year 2 depreciation deduction for each asset?

[Hint: (1) Commercial building is a nonresidential real property with 39 years of recovery period. Assume the depreciation percentage for the year is 0.535%.

(2) Computer equipment has 5 year of recovery period.

(3) Assume that Poplock chooses double declining (DB) method.

(4) Note that Poplock uses the mid-year convention for personalty (e.g., computer equipment, furniture, truck) and mid-month convention for realty (e.g., building).]