For tax purposes: All assets are MACRS property as follows: Store building, 39-year nonresidential

real property; equipment, seven-year property; and trucks, five-year property. The

corporation acquired the store building for $1.5 million and placed it in service on January

2, 2011. The corporation acquired two pieces of equipment for $400,000 (Equipment 1) and

$800,000 (Equipment 2) and placed them in service on January 2, 2011. The corporation

acquired the trucks for $200,000 and placed them in service on July 18, 2012. The trucks are

not listed property and are not subject to the limitation on luxury automobiles. The corporation

did not make the expensing election under Sec. 179 or take bonus depreciation on any

property acquired before 2014. Accumulated tax depreciation through December 31, 2013,

on these properties is as follows:

Store building $113,835

Equipment 1 225,080

Equipment 2 450,160

Trucks 104,000

On October 16, 2014, the corporation sold for $425,000 Equipment 1 that originally

cost 400,000 on January 2, 2011. The corporation had no Sec. 1231 losses from prior years.

In a separate transaction on October 17, 2014, the corporation acquired and placed in service

a piece of equipment costing $1.6 million. Assume these two transactions do not qualify

as a like-kind exchange. The new equipment is seven-year property. The corporation made

the Sec. 179 expensing election with regard to the new equipment but elected out of bonus

depreciation. Where applicable, use published IRS depreciation tables to compute 2014

depreciation (reproduced in Appendix C of this text).

Using Form 4562 (2014 Form), what is the total MACRS deductions for assets placed in service in tax years before 2014? (Part III Line 17)

Also, what is the total depreciation? (Part IV Line 22)

Please give depreciation calculations for each of the assets in 2014.