Firm J purchased a depriciable business asset for $62,500. Assuming the firm uses the half-year convention, comput its first -year MACRS depriciation if the asset is: See Table 7-1 and Table 7-2.

Required: a. A land irrigation system. b. Duplicating equipment. c. An oceangoing barge. d. Small manufacturing tools. MACRS Depreciation + a. A land irrigation system b. Duplicating equipment An oceangoing barge d., Small manufacturing tools C. TABLE 7.1 Recovery Periods for Tangible Business Assets MACRS Recovery Period 3 years 5 years 7 years 10 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, and 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 farm 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. 15 years 20 years 25 years 27.5 years 39 years 50 years Recovery Period TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 2 3 4 5 6 7 8 33.33% 44,45 14.81 7.41 20,00% 32.00 19.20 11.52 11.52 5.76 Depreciation Rate 14.29% 10.00% 24.49 18.00 17.49 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 10 11 3.750% 7.219 6.677 6.177 5.713 5285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 12 13 14 15 16 17 18 19 20 21