Question
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore 179 expense and bonus depreciation for this problem): (Use MACRS Table
Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore 179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.)
AssetDate Placed in ServiceOriginal BasisMachineryOctober 25$ 114,000Computer equipmentFebruary 354,000Delivery truck*March 1767,000FurnitureApril 22194,000Total$ 429,000*The delivery truck is not a luxury automobile.
In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $740,000.
a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 179 expense and elects out of bonus depreciation?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
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