In March 2021, Jones Company purchased a Mercedes for use in its business at a cost of $73,000. Required: Assuming no bonus depreciation or Section 179 deduction, calculate the allowable tax depreciation on this asset for 2021, 2022, and 2023. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2021 to 2024: 2021 $ 10, 200 2022 16, 400 2023 9 ,800 2024 and subsequent years 5,860 Amount 2021 depreciation 2022 depreciation 2023 depreciationTABLE 7.1 Recovery Periods for Tangible Business Assets MACRS Recovery Period Assets Included 3 years Small manufacturing tools, racehorses and breeding hogs, special handling devices used in food manufacturing. 5 years Cars, trucks, buses, helicopters, computers, typewriters, duplicating equipment, breeding and dairy cattle, cargo containers, new farming machinery and equipment. 7 years Office furniture and fixtures, railroad cars and locomotives, most machinery and equipment. 10 years 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. 15 years Certain building improvements; land improvements such as fencing, roads, sidewalks, bridges, irrigation systems, and landscaping; telephone distribution plants; pipelines; billboards; and service station buildings. 20 years Certain farm buildings, municipal sewers. 25 years Commercial water utility property. 27.5 years Residential rental real property (duplexes and apartments). 39 years Nonresidential real property (office buildings, factories, and warehouses). 50 years Railroad grading or tunnel bore.TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Depreciation Rate 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 5.677 7.41 11.52 12.49 11.52 5 7.70 5.177 11.52 8.93 9.22 5.93 5.713 5.76 8.92 7.37 5.23 5.285 8.93 6.55 5.90 1.888 4.46 6.55 5.90 4.522 5.56 5.91 4.462 10 6.55 5.90 1.461 11 3.28 5.91 12 4.462 5.90 13 4.461 5.91 4.462 14 5.90 15 4.461 5.91 4.462 16 2.95 4.461 17 4.462 18 19 4.461 4.462 20 4.461 21 2.231