Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five-year recovery property costing $312,800, and the second purchase was seven-year recovery property costing $574,000. Use Table 7-2 and Appendix 7-A. Required: a. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that the first purchase occurred on February 2, and the second purchase occurred on June 18. MACRS Depreciation Five-year recovery property $ Seven-year recovery property 63,600x 82,025 TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Depreciation Rate 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 3.28 5.91 4.462 11 5.90 4.461 12 5.91 4.462 13 5.90 4.461 14 5.91 4.462 15 2.95 4.461 16 4.462 17 4.461 18 4.462 19 4.461 20 2.231 21 Q http://ezto-cf-media.mheducation.com/Media/Connect Production/bne/accounting/jones 25e/appendic Appendix 7-A Midquarter Convention Tables Midquarter Convention for Business Personalty Placed in Service in First Quarter Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 58.33% 35.00% 25.00% 17.50% 8.75% 6.563% 2 27.78 26.00 21.43 16.50 9.13 7.000 3 12.35 15.60 15.31 13.20 8.21 6.482 4 1.54 11.01 10.93. 10.56 7.39 5.996 5 11.01 8.75 8.45 6.65 5.546 6 1.38 8.74 6.76 5.99 5.130 7 8.75 6.55 5.90 4.746 8 1.09 6.55 5.91 4.459 6.56 5.90 4.459 9 6.55 5.91 4.459 10 0.82 5.90 4.459 11 5.91 4.460 12 5.90 4.459 13 5.91 4.460 14 5.90 4.459 15 0.74 4.460 16 4.459 17 4.460 18 4.459 19 4.460 20 0.557 21 Vidquarter Convention for Business Personalty Placed in Service in Second Quarter Period. Midquarter Convention for Business Personalty Placed in Service in Second Quarter Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 41.67% 25.00% 17.85% 12.50% 6.25% 4.688% 2 38.89 30.00 23.47 17.50 9.38 7.1481 3 14.14 18.00 16.76 14.00 8.44 6.612 4 5.30 11.37 11.97 11.20 7.59 6.116 5 11.37 8.87 8.96 6.83 5.658 6 4.26 8.87 7.17 6.15 5.233 7 8.87 6.55 5.91 4.841 8 3.33 6.55 5.90 4.478 9 6.56 5.91 4.463) 10 6.55 5.90 4.463 11 2.46 5.91 4.463 12 5.90 4.463 5.91 4.463 13 5.90 4.463 14 5.91 4.462 15 2.21 4.463 16 4.462 17 4.463 18 4.462 19 4.463 20 1.673 21 Midquarter Convention for Business Personalty Placed in Service in Third Quarter Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 25.00% 15.00% 10.71% 7.50% 3.75% 2.813% 2 50.00 34.00 25.51 18.50 9.63 7.289 3 16.67 20.40 18.22 14.80 8.66 6.742. 4 8.33 12.24 13.02 11.84 7.80 6.237 5 11.30 9.30 9.47 7.02 5.769 6 7.06 8.85 7.58 6.31 5.336 7 8.86 6.55 5.90 4.936 8 5.53 6.55 5.90 4.566 9 6.56 5.91 4.460 10 6.55 5.90 4.460 4.10 5.91 4.460 11 5.90 4.460 12 5.91 4.461 13 5.90 4.460 14 5.91 4.461 15 3.69 4.460 16 4.461 17 4.460 18 4.461 19 4.460 20 21788 21 Midquarter Convention for Business Personalty Placed in Service in Fourth Quarter Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 8.33% 5.00% 3.57% 2.50% 1.25% 0.938% 2 61.11 38.00 27.55 19.50 9.88 7.430 3 20.37 22.80 19.68 15.60 8.89 6.872 4 10.19 13.68 14.06. 12.48 8.00 6.357 5 10.94 10.04 9.98 7.20 5.880 6 9.58 8.73 7.99 6.48 5.439 7 8.73 6.55 5.90 5.031 S 7.64 6.55 5.90 4.654 9 6.56 5.90 4.458 10 6.55 5.91 4.458 11 5.74 5.90 4.458 5.91 4.458 12 5.90 4.458 13 5.91 4.458 14 5.90 4.458 15 5.17 4.458 16 4.458 17 4:459 18 4.458 19 4.459 20 3.901 21