Jeff is also interested in your knowledge of depreciation. He has heard of a special expensing of depreciation. Can he do it? He plans to spend $500 million dollars in equipment purchases this year alone. He wants to know his consulting firm can perform basic depreciation. He gives you two pieces of property-a seven property (office furniture) and a five year property (computer) for you to calculate depreciation for three years. Jeff spent One Hundred Thousand ($100,000.00) dollars on the office furniture and ten Thousand ($10,000) dollars on the computer. Please calculate the depreciation below:

MACRS

3 Year 5 year 7 year

1 33.33 20.00 14.29

2 44.45 32.00 24.49

3 14.81 19.20 17.49

4 7.41 11.52 12.49