Compute MACRS for 2017, 2018, 2019, 2020 for Oak Farm Inc. (Tractors are seven year items. Cows are five year items)

On September 2, 2017 Oak Farm bought a new tractor, cost $250,000.

In June 2018 Oak bought five red cows, cost 20,000 each ($100,000)

In December 2018 Oak bought one brown cow, cost 25,000

On August 1, 2019 Oak bought a new office equipment system, (seven year item) totally automated, cost $2,900,000

On February 1, 2020 Oak purchased a black cow, cost $30,000

On November 14, 2020, Oak bought a new framus (three year item,) cost $400,000.

On December 15, 2019 one of the red cows was trapped in a snowfall and died. Oak did not have any insurance on the cow. Compute basis and loss.

In December 2020 Oak sold one of the red cows for $1,000.

Be prepared to review computation of MACRS for 2017, 2018, 2019 and 2020.

Oak declined section 179 and all other optional write-offs.

(Income Taxation)