For the first 2 years, calculate the depreciation expense for a $7,500 car. This is a nonluxury car. Use Table 174 and Table 17.5. Depreciation expense Year 1 Year 2 Class recovery perlod (life) Asset types TABLE 17-4 Modified Accelerated Cost Recovery System (MACRS) for assets placed in service after December 31, 1986 3-year Racehorses more than 2 years old or any horse other than a racehorse that is more than 12 yoars old at the time placed into service special tools of certain Industries 5-year Automobiles (not luxury taxislight general-purpose trucks; semiconductor manufacturing equipment computer-based tolophone contral office switching equipment qualified technological equipment property used in connection with rosearch and experimentation 7-year Railroad track, single purpose agricultural (pigpens) or horticultural structures fixturos equipment furniture 10-year Now low doesn't add any specific property under this class 15 year Municipal Wastewater treatment plant telephone distribution plants and comparable equipment used for two-way exchange of voice and data communications 20 year Municipal sowors 275 your Only residential rental property 315 year Only nonresidential real property These cases 2006 eng balance method witching to the straight line method These avesse 150 degblance in the switching to the shine method These setiemethod TABLE 17-5 Annual recovery for MACRS Recovery year 3-year class (200% D.B.) 5-year class (200% D.B.) 10-year class (200% D.B.) 15-year class (150% D.B.) 20-year class (150% D.B.) 1 5.00 7-year class (200% D.B.) 14.28 24.49 17:49 33.00 45.00 15.00 7.00 2 20.00 32.00 19.20 11.52 10.00 18.00 14.40 9,50 3.75 7.22 6.68 3 8.55 4 11.52 7.69 6.18 5 1249 8.93 8.93 11.52 5.76 6.93 G 5.71 5.28 7 8.93 8 9.22 7.37 6.55 6.55 6.55 6.55 4.46 6.23 5.90" 5.90 5.90 5.90 4.89 4.52 9 10 4.46 4.46 11 3:29 5.90 12 13 4.46 4.46 4.46 5.90 5.90 5.90 5.90 3.00 4.46 15 16 4.46 4.46 fies when this made to straight line