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Chaz Corporation has taxable income in 2016 of $437,000 before the 179 expense and acquired the following assets during the year: Placed in Asset Service
Chaz Corporation has taxable income in 2016 of $437,000 before the 179 expense and acquired the following assets during the year:
| Placed in |
|
|
Asset | Service |
| Basis |
Office furniture | September 12 | $ | 1,130,000 |
Computer equipment | February 10 |
| 906,000 |
Delivery truck | August 21 |
| 53,000 |
Total |
| $ | 2,089,000 |
|
What is the maximum total depreciation expense that Chaz may deduct in 2016? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)
Maximum Total Depreciation Expense $______________
\fTABLE 23 MAtI-t Mid-Duortor Convention: For property pieced in service during the first querter Depreciation Rate for Recovery Period 'i'nr E-ynr T-yonr 1 35.0053 25.0035 2 25.00 21.43 3 15.50 15.31 4 11.01 10.33 5 11.01 3.?5 5 1.33 3.?4 ? 3.?5 3 1.03 TABL E 2') Nina-15 Mid-Dunner Convention: For property pieced in service during the second querter Depreciation Rate for Recovery Period 'iha r E-yoar 'i-yolr 1 25.00% 113535 2 30.00 23.4? 3 13.00 15.?5 4 11.3? 11.3? 5 11.3? 3.3? 5 425 3.3? ? 3.3? 3 3.34 TABL E 20 MAGRE Mid-Duo rtor Convention: For property pieced in service during the third querter Depreciation Rate for Recovery Period You E-yoar 1er 1 15.0055 10.?135 2 3400 25.51 3 20.40 13.22 4 12.24 13.02 5 11.30 3.30 5 ?.05 3.35 ? 3.35 3 5.53 TABLE 21:] MAWE-Mid Quarter Convention: For property pieced in service during the fourth quarter Depreciation Rate for Recovery Period Your E-yoar 'i-ynlr 1 5.00% 3.5?35 2 33.00 2?.55 3 22.30 13.53 4 13.53 1405 5 10.34 10.04 5 3.53 3.?3 ? 3.?3 3 ?.54 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line31.5Years \"or assets placed in service before May 13, 1993] Month Property Placed in Service bar 1 2 3 4 5 5 1 s a 10 11 12 1 3.042% 2.11311. 2.51390 2.24395 1.354115 1.120% 1.45591, 1.10031. 0. 52595 0.55191. 0.33190 313291. 21 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3.115 3 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.115 3.115 3.115 3.115 3.115 9 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 10 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 11 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 12 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 13 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 14 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3114 3.115 3.114 15 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3115 3.114 3.115 15 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 11 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 15 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 13 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 20 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 21 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 22 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 23 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 24 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 25 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 25 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 21 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 25 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 23 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 30 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 31 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 3.114 3.115 32 1.120 1.054 2.243 2.513 2.115 3.042 3.115 3.114 3.115 3.114 3.115 3.114 33 0.132 0.391 0.551 0.025 1.190 1.455 AB LE 5 Nenmidentinl Real Property Mid-Month Convention Straight Line-SBYears {for assets placed in service on or aner May 13, 1993) Month property placed in service 9' TD 12 2.461% 2.24791: 2.033% 1.819% 1.39155 1.1??91: 0.9%\": 0.749% 0.535% 0.32195 0.107% 2.564 2.564 2.564 2.554 2.534 2.554 2.564 2.564 2.584 2.564 2.554 0.10? 0.321 0.535 0. 749 1.17? 1.391 1.605 1.519 2.033 2.24? 2.451Step by Step Solution
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