Class 3-year Typical Assets Small tools, tractors, horses, specialized mfg. Devices Depr. Method 200% Decl. Bal. Fourth quarter 5-year 200% Decl. Bal. Computers, autos, light trucks, small aircraft, Construction equipment, research and develop- Ment property 5.00% 38.00 22.80 13.68 10.94 9.58 11.37 12.24 7-year 200% Decl. Bal. Office furniture, fixtures and equipment, com- Mercial aircraft, and most machinery Fourth quarter 10-year 200% Decl. Bal Specialized heavy mfg. Machinery, mobile Homes Table 2-2. Optional MACRS GDS Percentage Tables a. MACRS 5-Year Property (200% DB) Half-year convention Mid-quarter convention Year First Second Third quarter quarter quarter 20.00% 35.00% 25.00% 15.00% 32.00 26.00 30.00 34.00 19.20 15.60 18.00 20.40 11.52 11.01 11.52 11.01 11.37 11.30 5.76 1.38 4.26 7.06 b. MACRS 7-Year Property (200% DB) Half-year convention Mid-quarter convention Year First Second Third quarter quarter quarter 14.29% 25.00% 17.85% 10.71% 24.49 21.43 23.47 25.51 17.49 15.31 16.76 18.22 12.49 10.93 11.97 13.02 8.93 8.75 8.87 9.30 8.92 8.74 8.87 8.85 8.93 8.75 8.87 8.86 c. MACRS 15-Year Property (150% DB) Half-year convention Mid-quarter convention Year Firs Second Third quarter quarter quarter 5.00% 8.75% 6.25% 3.75% 9.50 9.13 9.38 9.63 8.55 8.21 8.44 8.66 7.70 7.39 7.59 7.80 6.93 6.65 6.83 7.02 6.23 5.99 6.15 6.31 5.90 5.90 5.91 5.90 5.90 5.91 5.90 5.90 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 15-year 150% Decl. Bal Billboards, service station buildings, and tele- Phone equipment 20-year 150% Decl. Bal. Sewer pipes, most utility property, land improve- ments 27.5 year Residential real estate property Straight Line Fourth quarter 1.25% 9.88 8.89 8.00 7.20 6.48 5.90 5.90 31.5 year Office and other non-residential real estate property Straight Line Your boss has just purchased a small plane to be used to take aerial images of the company's construction project. Using the Depreciation rates for 200% Declining Balance Using the Half Year Convention, develop a depreciation schedule. The cost of the plane was $450,000. There is no expected salvage value. Class 3-year Typical Assets Small tools, tractors, horses, specialized mfg. Devices Depr. Method 200% Decl. Bal. Fourth quarter 5-year 200% Decl. Bal. Computers, autos, light trucks, small aircraft, Construction equipment, research and develop- Ment property 5.00% 38.00 22.80 13.68 10.94 9.58 11.37 12.24 7-year 200% Decl. Bal. Office furniture, fixtures and equipment, com- Mercial aircraft, and most machinery Fourth quarter 10-year 200% Decl. Bal Specialized heavy mfg. Machinery, mobile Homes Table 2-2. Optional MACRS GDS Percentage Tables a. MACRS 5-Year Property (200% DB) Half-year convention Mid-quarter convention Year First Second Third quarter quarter quarter 20.00% 35.00% 25.00% 15.00% 32.00 26.00 30.00 34.00 19.20 15.60 18.00 20.40 11.52 11.01 11.52 11.01 11.37 11.30 5.76 1.38 4.26 7.06 b. MACRS 7-Year Property (200% DB) Half-year convention Mid-quarter convention Year First Second Third quarter quarter quarter 14.29% 25.00% 17.85% 10.71% 24.49 21.43 23.47 25.51 17.49 15.31 16.76 18.22 12.49 10.93 11.97 13.02 8.93 8.75 8.87 9.30 8.92 8.74 8.87 8.85 8.93 8.75 8.87 8.86 c. MACRS 15-Year Property (150% DB) Half-year convention Mid-quarter convention Year Firs Second Third quarter quarter quarter 5.00% 8.75% 6.25% 3.75% 9.50 9.13 9.38 9.63 8.55 8.21 8.44 8.66 7.70 7.39 7.59 7.80 6.93 6.65 6.83 7.02 6.23 5.99 6.15 6.31 5.90 5.90 5.91 5.90 5.90 5.91 5.90 5.90 3.57% 27.55 19.68 14.06 10.04 8.73 8.73 15-year 150% Decl. Bal Billboards, service station buildings, and tele- Phone equipment 20-year 150% Decl. Bal. Sewer pipes, most utility property, land improve- ments 27.5 year Residential real estate property Straight Line Fourth quarter 1.25% 9.88 8.89 8.00 7.20 6.48 5.90 5.90 31.5 year Office and other non-residential real estate property Straight Line Your boss has just purchased a small plane to be used to take aerial images of the company's construction project. Using the Depreciation rates for 200% Declining Balance Using the Half Year Convention, develop a depreciation schedule. The cost of the plane was $450,000. There is no expected salvage value
