Boxer LLC has acquired various types of assets recently used 100 percent in its trade or business. Below is a list of assets acquired during 2020 and 2021: Convention Half-year Mid-month Asset Machinery Warehouse Furniture Computer equipment Office equipment Automobile Office building Cost Basis $ 25,000 800,000 100,000 65,000 34,000 65,000 800,000 Date Placed in Service January 24, 2020 August 1, 2020 October 5, 2021 October 10, 2021 September 28, 2021 July 15, 2021 September 24, 2021 Boxer did not elect $179 expense and elected out of bonus depreciation in 2020 but would like to take advantage of the $179 expense and bonus depreciation for 2021 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation deduction for 2021. (Use MACRS Table 1, MACRS Table 5, and Exhibit 10-10.) (Round final answer to the nearest whole number.) Month 10 Month 11 Month 12 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 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 0.535% 0.107% 2.564 0.321% 2.564 2.247 2.564 2.461 2.033 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 3 4 and after 2021* 10.100** 16,100 9,700 5,760 Year Placed in Service 2020 2019 10,100** 10.100** 16,100 9,700 9,700 5,760 5,760 2018 10,000** 16,000 9,600 16,100 5,760 *As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021. **$8,000 additional depreciation is allowed when bonus depreciation is claimed [3168(k)(2)(F)). Boxer LLC has acquired various types of assets recently used 100 percent in its trade or business. Below is a list of assets acquired during 2020 and 2021: Convention Half-year Mid-month Asset Machinery Warehouse Furniture Computer equipment Office equipment Automobile Office building Cost Basis $ 25,000 800,000 100,000 65,000 34,000 65,000 800,000 Date Placed in Service January 24, 2020 August 1, 2020 October 5, 2021 October 10, 2021 September 28, 2021 July 15, 2021 September 24, 2021 Boxer did not elect $179 expense and elected out of bonus depreciation in 2020 but would like to take advantage of the $179 expense and bonus depreciation for 2021 (assume that taxable income is sufficient). Calculate Boxer's maximum depreciation deduction for 2021. (Use MACRS Table 1, MACRS Table 5, and Exhibit 10-10.) (Round final answer to the nearest whole number.) Month 10 Month 11 Month 12 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 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 0.535% 0.107% 2.564 0.321% 2.564 2.247 2.564 2.461 2.033 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 3 4 and after 2021* 10.100** 16,100 9,700 5,760 Year Placed in Service 2020 2019 10,100** 10.100** 16,100 9,700 9,700 5,760 5,760 2018 10,000** 16,000 9,600 16,100 5,760 *As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021. **$8,000 additional depreciation is allowed when bonus depreciation is claimed [3168(k)(2)(F))