Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: Assume CARES Act applies. (ignore 179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2and Table 5.)
| | Date Placed | | Original |
| Asset | in Service | | Basis |
| Machinery | October 25 | $ | 70,000 |
| Computer equipment | February 3 | | 10,000 |
| Delivery truck* | March 17 | | 23,000 |
| Furniture | April 22 | | 150,000 |
| Total | | $ | 253,000    |
Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year S-Year 7-Year 10-Year 15-Year Year 1 33.33% 14.29% 10.00% 5.00 Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14,81 19.30 17.49 8.55 Year 4 7.41 11.52 11.52 7.70 Years 11.52 8.93 6.93 Year 6 5.76 8.92 7.37 Year 7 6.55 5.90 Years 4.46 6.35 5.90 Year 9 5.91 Year 10 6.55 5.90 Year 11 5.91 Year 12 5.90 Year 13 5.91 Year 14 5.90 Year 15 5.91 Year 16 2.95 Year 17 Year 18 Year 19 20-Year 3.7509 7.219 6,677 6.177 3.713 5.285 4.888 4.522 4.462 4.461 4.461 4.461 4.462 4.461 4.462 4.462 4.461 Year 20 TABLE 2a MACRS Mid Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period S-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 Years 11.37 8.87 Year 6 8.87 Year 7 8.87 Year EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 2020 10.100 16.100 9.700 Year Placed in Service 2019 2018 10.100 10,000 16.100 16,000 9.700 9.600 5760 5.760 2017 3.160 5.100 3,050 1.875 and after *As of press date, the IRS had not released the 2020 Mitations for automobiles, so trouglow the chapter we wse the same wat ons as in 2019 for 2020 **58.000 dona depreciation is allowed her bonus depreciation is claimed (516572XF)] TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line19 Years (for assets placed in service on or after May 13, 1991) Moath Property Placed in Service Month 1 Month 2 Month 3 Month 4 Months Month 6 Month 7 Months Month Year 1 2.461% 2,03396 18199 1.1779 0.96396 0.7-9996 Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 Month 10 0.5159 2.364 2.033 Month 11 0.32196 2.364 Month 12 0.1079 2564 2.461 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year S-Year 7-Year 10-Year 15-Year Year 1 33.33% 14.29% 10.00% 5.00 Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14,81 19.30 17.49 8.55 Year 4 7.41 11.52 11.52 7.70 Years 11.52 8.93 6.93 Year 6 5.76 8.92 7.37 Year 7 6.55 5.90 Years 4.46 6.35 5.90 Year 9 5.91 Year 10 6.55 5.90 Year 11 5.91 Year 12 5.90 Year 13 5.91 Year 14 5.90 Year 15 5.91 Year 16 2.95 Year 17 Year 18 Year 19 20-Year 3.7509 7.219 6,677 6.177 3.713 5.285 4.888 4.522 4.462 4.461 4.461 4.461 4.462 4.461 4.462 4.462 4.461 Year 20 TABLE 2a MACRS Mid Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period S-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 Years 11.37 8.87 Year 6 8.87 Year 7 8.87 Year EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 2020 10.100 16.100 9.700 Year Placed in Service 2019 2018 10.100 10,000 16.100 16,000 9.700 9.600 5760 5.760 2017 3.160 5.100 3,050 1.875 and after *As of press date, the IRS had not released the 2020 Mitations for automobiles, so trouglow the chapter we wse the same wat ons as in 2019 for 2020 **58.000 dona depreciation is allowed her bonus depreciation is claimed (516572XF)] TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line19 Years (for assets placed in service on or after May 13, 1991) Moath Property Placed in Service Month 1 Month 2 Month 3 Month 4 Months Month 6 Month 7 Months Month Year 1 2.461% 2,03396 18199 1.1779 0.96396 0.7-9996 Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 Month 10 0.5159 2.364 2.033 Month 11 0.32196 2.364 Month 12 0.1079 2564 2.461
