Compute MACRS For Ace industry

In May 2021 Ace purchased a widget (5 year) for 1.75 million (1,750,000). Because of building modifications necessary to install the widget it was not fully functional until November 15, 2021. Cost of building modifications was 95,000. When they purchased the Widget they also purchased 300,000 of supplies and bearings for the widget. Bearings are replaced every 60 days of use.

In June 2022 Ace purchased a Framus (3-year item) for $100,000. In September they also purchased four more Framuses, at 100,00 each. All Framus where put in place and functional as soon as purchased.

In December 2024 someone drove a delivery truck into a Framus and destroyed it. The wrecked Framus was placed in a dumpster for garbage pick-up. Insurance recovery was 8,250.

In January 2025 one of the Framuses was flooded and unusable. Because the flood was caused by an Ace employee there was no insurance recovery.

A. Compute Aces MACRS for 2021,2022, 2023, 2024 and 2025 for the widget and all Framuses. B. Compute MACRS for the same periods if Ace declined both section 179 and bonus write-off