Exhibit 8.1 has a listing of the cost recovery periods used under the Modified Accelerated Cost Recovery System (MACRS) for various types of property. The exhibit indicates that there are express provisions for assets used in agriculture and transportation equipment. Also, on page 8-22, the text indicates that different recovery periods are used under the Alternative Depreciation System (ADS).

1. What is the MACRS cost recovery period for each type of asset specifically identified by the IRS as being used in agriculture (including farming and ranching)?

2. What is the MACRS cost recovery period for each type of asset specifically identified by the IRS as being used in railroad transportation?

3. What are the ADS recovery periods for each type of asset in the answers to questions 1 and 2?

Please answer each question in complete sentences, and cite name and number of the IRS publication or form/instruction where you found each answer, and the page number on which the answer is found. Use your own words in the answer do not copy the IRS language.