following transactions relating to computer software:

View the transactions. View the MACRS half$-$year convention rates.

What amount can Phillips Corporation deduct in $2022$ with respect to computer software?

Transactions

MACRS Half$-$year Convention Rates

The corporation purchased a new computer system on May $12,2022,$ for

$$15,000.$ The system included computer hardware and built$-$in computer

software valued at $$3,000.$ The corporation has never separated computer

software from the hardware in prior years when a computer system was

purchased.

The corporation separately purchased new bookkeeping software on

September $1,2022,$ for $$5,760.$

On June $1,2022,$ Phillips Corporation acquired another home building

company to strengthen its position in higher$-$priced homes. The total

purchase price was $$700,000$ allocated to specific assets as follows: