Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming In the process of doing so, TM has acquired various types of assets Below is a list of assets acquired during 2015 (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5 ) (Round intermediate calculations and final answer to the nearest whole dollar amount ) Asset Cost Date Placed in Service Office furniture $ 10,000 02 03 2015 Machinery 560,000 07 22 2015 Used delivery truck 15,000 08 17 2015 Not considered a luxury automobile, thus not subject to the luxury automobile limitations During 2015, TM had huge success (and had no 179 limitations) and Steve acquired more assets the next year to increase its production capacity These are the assets acquired during 2016 Date Placed Asset Cost in Service Computers info system $ 40,000 03 31 2016 Luxury auto 80,000 05 26 2016 Assembly equipment 475,000 08 15 2016 Storage building 400,000 11 13 2016 Used 100 for business purposes TM generated taxable income in 2016 before any 179 expense of $732,500 1 ) Compute the maximum 2015 depreciation deductions including 179 expense (ignoring bonus depreciation) 2 ) Compute the maximum 2016 depreciation deductions including 179 expense (ignoring bonus depreciation) 3 ) Compute the maximum 2016 depreciation deductions including 179 expense, but now assume that Steve would like to take bonus depreciation on the 2016 assets 4 ) Ignoring part (c), now assume that during 2016, Steve decides to buy a competitors assets for a purchase price of $350,000 Compute the maximum 2016 cost recovery including 179 expense (ignoring bonus depreciation) Steve purchased the following assets for the lump sum purchase price Date Placed Asset Cost in Service Inventory $ 20,000 09 15 2016 Office furniture 30,000 09 15 2016 Machinery 50,000 09 15 2016 Patent 98,000 09 15 2016 Goodwill 2,000 09 15 2016 Building 130,000 09 15 2016 Land 20,000 09 15 2016 2016 Cost Recovery

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Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2015: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round intermediate calculations and final answer to the nearest whole dollar amount.)

Asset	Cost		Date Placed in Service
Office furniture	$	10,000	02/03/2015
Machinery		560,000	07/22/2015
Used delivery truck*		15,000	08/17/2015

* Not considered a luxury automobile, thus not subject to the luxury automobile limitations.

During 2015, TM had huge success (and had no 179 limitations) and Steve acquired more assets the next year to increase its production capacity. These are the assets acquired during 2016:

			Date Placed
Asset	Cost		in Service
Computers & info. system	$	40,000	03/31/2016
Luxury auto		80,000	05/26/2016
Assembly equipment		475,000	08/15/2016
Storage building		400,000	11/13/2016

Used 100% for business purposes.

TM generated taxable income in 2016 before any 179 expense of $732,500.

1.) Compute the maximum 2015 depreciation deductions including 179 expense (ignoring bonus depreciation).

2.) Compute the maximum 2016 depreciation deductions including 179 expense (ignoring bonus depreciation).

3.) Compute the maximum 2016 depreciation deductions including 179 expense, but now assume that Steve would like to take bonus depreciation on the 2016 assets

4.) Ignoring part (c), now assume that during 2016, Steve decides to buy a competitors assets for a purchase price of $350,000. Compute the maximum 2016 cost recovery including 179 expense (ignoring bonus depreciation). Steve purchased the following assets for the lump-sum purchase price.

			Date Placed
Asset	Cost		in Service
Inventory	$	20,000	09/15/2016
Office furniture		30,000	09/15/2016
Machinery		50,000	09/15/2016
Patent		98,000	09/15/2016
Goodwill		2,000	09/15/2016
Building		130,000	09/15/2016
Land		20,000	09/15/2016