DLW Corporation acquired and placed in service the following assets during the year:

	Date	Cost
Asset	Acquired	Basis
Computer equipment	3/1	$	18,300
Furniture	1/16	$	18,800
Commercial building	8/26	$	323,000

Assuming DLW does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5 a. What is DLW's year 1 cost recovery for each asset?

b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 2/22 of year 3?

Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.)

	Date Placed		Original
Asset	in Service		Basis
Machinery	October 25	$	90,000
Computer equipment	February 3		25,000
Used delivery truck*	August 17		38,000
Furniture	April 22		175,000

*The delivery truck is not a luxury automobile.

rev: 07_05_2021_QC_CS-268975

Problem 10-53 Part b (Algo)

b. What is the allowable depreciation on Evergreens property in the current year if Evergreen does not elect out of bonus depreciation?