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) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 12 April 22 Original Basis $ 84,00 $ 24,000 $ 37,000 $164,000 $ 309,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $440,000. Problem 10-54 Part a o. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 5179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) MACRS depreciation Problelil -54 (LU IU-2, LU 10-3) 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.) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 84,000 $ 24,000 $ 37.000 $164,000 $ 309,000 "The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $440,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take $179 expense)? MACRS depreciation 7 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20,00% 14.29% 10.00% 5.00% 3.750% Year 2 4 4.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7 .41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.235 .285 Year 8 .936 .55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6 .55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5 .90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 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 3 5.00% | 25.00% Year 2 26.00 21.43 Year 3 T 15.60 L Year 4 11.01 Year 5 11.01 8.75 Year 6 1 .38 8.74 Year 7 | 8.75 Year 8 1.09 os TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 6 8.87 Year 7 8.87 1 Year 3 T 3.34 8.87 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 7 Year 8 .86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5 .00% 3.57% Year 2 3 8.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 1 0.94 10.04 Year 6 9. 588.73 Year 7 8 .73 Years 7.64 TABLE 5 Nonresidential Real Property Mid Mouth Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1998) Month 3 2011 Month 12 0107 Mesthi Vearl 2461 Vear 2 30 2561 Year 400107 Mont 2241 2561 0 321 Month Property Placed in Service Month 4 Months Month 6 Month 7 months Moth 111011605 10141790 61019 2561 561 2.564 2561 1640 0.749 0 963 117 1 391 1605 1819 Month 10 Month 0.535903219 2.561 2564 2011 207 T 7561 2561 0.535 2161 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) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 12 April 22 Original Basis $ 84,00 $ 24,000 $ 37,000 $164,000 $ 309,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $440,000. Problem 10-54 Part a o. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 5179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) MACRS depreciation Problelil -54 (LU IU-2, LU 10-3) 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.) Asset Machinery Computer equipment Used delivery truck Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 84,000 $ 24,000 $ 37.000 $164,000 $ 309,000 "The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $440,000 b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take $179 expense)? MACRS depreciation 7 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 33.33% 20,00% 14.29% 10.00% 5.00% 3.750% Year 2 4 4.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7 .41 11.52 12.49 11.52 7.70 6.177 Year 5 11.52 8.93 9.22 6.93 5.713 Year 6 5.76 8.92 7.37 6.235 .285 Year 8 .936 .55 5.90 4.888 Year 8 4.46 6.55 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 6 .55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5 .90 4.461 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 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 3 5.00% | 25.00% Year 2 26.00 21.43 Year 3 T 15.60 L Year 4 11.01 Year 5 11.01 8.75 Year 6 1 .38 8.74 Year 7 | 8.75 Year 8 1.09 os TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Yearl 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 6 8.87 Year 7 8.87 1 Year 3 T 3.34 8.87 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 7 Year 8 .86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5 .00% 3.57% Year 2 3 8.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 1 0.94 10.04 Year 6 9. 588.73 Year 7 8 .73 Years 7.64 TABLE 5 Nonresidential Real Property Mid Mouth Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1998) Month 3 2011 Month 12 0107 Mesthi Vearl 2461 Vear 2 30 2561 Year 400107 Mont 2241 2561 0 321 Month Property Placed in Service Month 4 Months Month 6 Month 7 months Moth 111011605 10141790 61019 2561 561 2.564 2561 1640 0.749 0 963 117 1 391 1605 1819 Month 10 Month 0.535903219 2.561 2564 2011 207 T 7561 2561 0.535 2161