Firm J purchased a depreciable business asset for $64,500. 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. A land irrigation system b. Duplicating equipment. c. An oceangoing barge. d. Small manufacturing tools. (For all requirements, round your answers to the nearest whole dollar amount.) MACRS Depreciation 1. A land irrigation system . Duplicating equipment c. An oceangoing barge d. Smal manufacturing 100 TABLE 7.1 Recovery Periods for Tangible Business Assets MACRS Recovery Period 3 years 5 years 7 years 10 years 15 years Assets Included Small manufacturing tools, racehorses and breeding hogs, special handling devices used in food manufacturing Cars, trucks, buses, helicopters, computers, typewriters, duplicating equipment, breeding and dairy cattle, cargo containers, new farming machinery and equipment. Office furniture and fixtures, railroad cars and locomotives, most machinery and equipment. 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. Certain building improvements; land improvements such as fencing, roads, sidewalks, bridges, irrigation systems, and landscaping, telephone distribution plants; pipelines; billboards; and service station buildings. Certain form buildings, municipal sewers. Commercial water utility property Residential rental real property (duplexes and apartments) Nonresidential real property office buildings, factories, and warehouses). Railroad grading or tunnel bore. 20 years 25 years 27.5 years 39 years 50 years TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Year 3-Year 5-Year 15-Year 20-Year 33.33% 44.45 14,81 741 20.00% 32.00 19.20 11.52 11.52 5.76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Recovery Period 7-Year 10-Year Depreciation Rate 14.29% 10.00% 24.49 18.00 1749 14.40 12.49 11.52 8.93 9.22 8.92 7.37 8.93 6.55 4.46 6.55 6,56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4462 4.461 4.462 4.461 2.231