DEF Landscaping Company purchases a used backhoe in June of the current year. Under MACRS, Depreciation of the backhoe is calculated by dividing the basis of the backhoe by its useful life (recovery period) Salvage value is subtracted from the cost of the backhoe to determine depreciable basis Depreciation of the backhoe is calculated by multiplying the basis of the backhoe by a percentage from an IRS-provided table Useful life (recovery period) is assigned by DEF Landscaping Company