Big Corporation purchased and placed in service the following 100% business-use assets (all of the assets were purchased new). (Click the icon to view the business-use assets.) (Click the icon to view the MACRS half-year convention rates.) (Click the icon to view the MACRS mid-quarter convention rates for property placed in service in the first quarter.) (Click the icon to view the MACRS mid-quarter convention rates for property placed in service in the fourth quarter.) (Click the icon to view the MACRS straight-line rates for 39-year property.) What is Big's total depreciation deduction in each year for 2017 through 2021 ? More info Assume that Big purchased these assets in 2017 , when 50% bonus depreciation was available. Big claimed bonus depreciation but no Sec. 179 election on all eligible property in 2017 and 2018. - Truck (light-duty, modified non-personal use) costing $24,000 : Placed in service on February 15, 2017 with a 5-year MACRS recovery period. - Machinery costing $58,000 : Placed in service on May 1, 2017 with a 7-year MACRS recovery period. - Land costing \$69,000: Placed in service on July 1, 2017. - Building costing $110,000 : Placed in service on December 1, 2017 with a 39-year MACRS recovery period. - Equipment costing $45,000 : Acquired on December 24, 2017 and placed in service on January 5, 2018 with a 5-year MACRS recovery period. Reference Reference General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in First Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Reference General Depreciation System-MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in Fourth Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line Reference General Depreciation SystemMACRS Nonresidential Real Property Placed in Service After 5/12/93 Applicable Recovery Period: 39 years Applicable Depreciation Method: Straight Line Begin by calculating the total Year 1 (2017) depreciation for each asset. Big claimed bonus depreciation but no Sec. 179 election on all eligible property in 2017 and 2018. (Use MACRS rates to three decimal places, X.XXX\%. Round all amounts to the nearest dollar. Complete all input fields. Enter a 0 if no depreciation is allowed.) Now calculate the total Year 2 (2018) depreciation for each asset. Big claimed bonus depreciation but no Sec. 179 election on all eligible property in 2017 and 2018. (Use MACRS rates to three decimal places, X.XXX%. Round all amounts to the nearest dollar. Complete all input fields. Enter a 0 if no depreciation is allowed.)
