Carl's Cards has two depreciable assets. Both assets are used 100% in the business (no listed property). Carl's Cards did not elect to expense any assets under 179 and elected not to take any168(k) bonus depreciation (i.e. Parts I and II of Form 4562 will be left blank). These two assets are the only property that Carl's Cards has placed in service since the company was formed in 2015. Both assets are depreciated under the GDS.

Asset #1: Purchased for $10,000 and placed in service on 1/1/2015. Asset #1 has a 5-year MACRS recovery period. For book purposes, Carl's Cards depreciates Asset #1 over 5 years using straight line depreciation and $0 salvage value (book depreciation = $2,000/year).

Asset #2: Purchased for $40,000 and placed in service on 1/1/2016. Asset #2 has a 5-year MACRS recovery period. For book purposes, Asset #2 is depreciated using the straight-line method with a 5-year useful life and $0 salvage value (book depreciation = $8,000/year).

1. What is Carl's Cards tax depreciation for the Asset #1 in 2016 (Form 4562 Line 17)? Note: asset was placed in service in 2015, so this is year 2 depreciation for Asset #1.

2. What is Carl's Cards tax depreciation for Asset #2 in 2016 (Form 4562 Line 19b, box (g))?