Firm J purchased a depreciable business asset for $$63,500.$ Assuming the firm uses the half$-$year convention, compute its first$-$year MACRS depreciation if the asset is: Use Table $7-1$ and Table $7-2.$

Required:

A land irrigation system.

Duplicating equipment.

An oceangoing barge.

Small manufacturing tools.

Note: For all requirements, round your answers to the nearest whole dollar amount.

TABLE $7\mathrm{.}1$ Recovery Periods for Tangible Business Assets

MACRS Recovery Period Assets Included

$3$ years Small manufacturing tools, racehorses and breeding hogs, special handling devices used in food manufacturing.

$5$ years Cars, trucks, buses, helicopters, computers, typewriters, duplicating equipment, breeding and dairy cattle, cargo containers, new farming machinery and equipment.

$7$ years Office furniture and fixtures, railroad cars and locomotives, most machinery and equipment.

$10$ years Single$-$purpose agricultural and horticultural structures; assets used in petroleum refining, vessels, barges, and other water transportation equipment; fruit$-$ or nut$-$bearing trees and vines.

$15$ years Certain building improvements; land improvements such as fencing, roads, sidewalks, bridges, irrigation systems, and landscaping; telephone distribution plants; pipelines; billboards; and service station buildings.

$20$ years Certain farm buildings, municipal sewers.

$25$ years Commercial water utility property.

$27\mathrm{.}5$ years Residential rental real property $($duplexes and apartments$).$

$39$ years Nonresidential real property $($office buildings, factories, and warehouses$).$

$50$ years Railroad grading or tunnel bore.

TABLE $7\mathrm{.}2$ MACRS for Business Personalty $($Half$-$Year Convention$)$

Recovery Period

Year $3-$Year $5-$Year $7-$Year $10-$Year $15-$Year $20-$Year

Depreciation Rate

$133\mathrm{.}33\%20\mathrm{.}00\%14\mathrm{.}29\%10\mathrm{.}00\%5\mathrm{.}00\%3\mathrm{.}750\%$

$244\mathrm{.}4532\mathrm{.}0024\mathrm{.}4918\mathrm{.}009\mathrm{.}507\mathrm{.}219$

$314\mathrm{.}8119\mathrm{.}2017\mathrm{.}4914\mathrm{.}408\mathrm{.}556\mathrm{.}677$

$47\mathrm{.}4111\mathrm{.}5212\mathrm{.}4911\mathrm{.}527\mathrm{.}706\mathrm{.}177$

$511\mathrm{.}528\mathrm{.}939\mathrm{.}226\mathrm{.}935\mathrm{.}713$

$65\mathrm{.}768\mathrm{.}927\mathrm{.}376\mathrm{.}235\mathrm{.}285$

$78\mathrm{.}936\mathrm{.}555\mathrm{.}904\mathrm{.}888$

$84\mathrm{.}466\mathrm{.}555\mathrm{.}904\mathrm{.}522$

$96\mathrm{.}565\mathrm{.}914\mathrm{.}462$

$106\mathrm{.}555\mathrm{.}904\mathrm{.}461$

$113\mathrm{.}285\mathrm{.}914\mathrm{.}462$

$125\mathrm{.}904\mathrm{.}461$

$135\mathrm{.}914\mathrm{.}462$

$145\mathrm{.}904\mathrm{.}461$

$155\mathrm{.}914\mathrm{.}462$

$162\mathrm{.}954\mathrm{.}461$

$174\mathrm{.}462$

$184\mathrm{.}461$

$194\mathrm{.}462$

$204\mathrm{.}461$

$212\mathrm{.}231$Determine the tax basis of the business asset acquired in each of the following cases:

Required:

a$.$ Firm L paid $$8,800$ cash plus $$616$ sales tax plus a $$540$ installation charge for a satellite dish.

b$.$ TTP$,$ Incorporated acquired inventory in exchange for $1,600$ shares of TTP common stock listed on Nasdaq at $$394$ per share on the

date of exchange.

c$.$ Firm Q acquired machinery in exchange for architectural drawings rendered by Firm's Q$\text{'}$s junior partner. The partner spent $20$ hours

on the drawings, and their hourly billing rate is $$790.$

d$.$ Company $C$ purchased equipment by paying $$2,210$ cash at date of purchase and financing the $$18,050$ balance of the price under

a three$-$year deferred payment plan.