C Ag Law and Taxation Cost Recovery -k Karissa Stanfield On August 5, Sam traded tractors for a two year old model. The old tractor had a remaining undepreciated value of $5,709. Sam paid $50,000 "boot" in the trade for the new tractor. He elects to roll the basis of the used tractor into the new one. 1. The tractor is 7 Year property. 2. If Sam does not expense any of the cost of the tractor, then the depreciation will be (use MACRS and mid- quarter convention): 3. If Sam expenses the maximum on the tractor trade, and uses the mid-year convention and MACRS, then the depreciation will be: 4. If Sam does not expense any of the cost and uses the mid-year convention and straight line depreciation over the alternate MACRS life, his depreciation will be: 5. If Sam uses MACRS, then the first year the tractor will appear on Sam's January balance sheet with a z book value will be in Under MACRS, a computer is classified as 5 Year property