Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 *Not considered a luxury automobile. During 2019, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 fUsed 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 for purposes of computing the $179 expense limitation. (Use MACRS Table 1, Table 2. Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) a. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description Office furniture Machinery Delivery truck Total 2019 Cost Recovery Cost $179 Expense $ 150,000 $ $ 1,560,000 1,000,000 X 40,000 0 $ 1,750,000 $ 1,000,000 MACRS Current Total Cost MACRS Recovery Basis Depreciation Deduction 150,000 $ 21,435$ 21,435 560,000 80,024 X 1,080,024 40,000 8,000 8.000 750,000 $ 109,459 1,109,459 b. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 2019 Assets Office furniture Machinery Used delivery truck 150,000 $ 1,560,000 40,000 0$ 0 0 150,000 $ 560,000 $ 40,000 21,435 X $ 80,024 X 8,000 21,435 80.024 8,000 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 22,000 X 0 X 400,000 80,000 1,200,000 700,000 110,000 X 70,000 1,200,000 X 312,000 10.000 290,000 10,000 0 X 700,000 X 240,000 > 240,000 700,000 0 0 X Total 2020 Cost Recovery $ 4,130,000 $ 1,000,000 $ 2,130,000 $ 371,459 $ 1,371,459 c. Compute the maximum 2020 depreciation deductions, including $179 expense, but now assume that karane would like to take bonus depreciation. Answer is complete but not entirely correct. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ $ 2019 Assets Office Furniture Machinery Used Delivery Truck 150,000 1,560,000 0$ 0 0 0 0 0 X $ 195,000 X 15,000 X 0 47,756 47.756 X 4.800 X 40.000 4.800 40.000 X 40,000 X 7,500 X 7,500 X 1,500 X 9,000 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 80,000 1,200,000 700,000 0 1,200,000 0 8,000 0 X 0 72,000 0 700.000 3,160 x 0 2,247 11,160 1,200,000 2,247 Total 2020 Cost Recovery $ 3,770,000 $ 1,240,000 $ 15,500 $ 989,500 $ 59,463 $ 1,274,963 d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 cost recovery, including $179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $ 220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction $ 2019 Assets Office Furniture Machinery Used Delivery Truck 0 0 0 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 0 0 0 0 0 Inventory Office Furniture Machinery Patent Goodwill Building Land 0 0 0 0 Totals 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 20-Year 3.750% 7.219 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14.81 19.20 17.49 14.40 8.55 Year 4 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 6.677 6.177 5.713 5.285 4.888 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 Year 11 3.28 5.91 4.461 4.462 4.461 Year 12 5.90 Year 13 5.91 4.462 Year 14 5.90 4.461 4.462 Year 15 5.91 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 1. Year TABLE 2 MACRS Mid-Quarter Couveuties: For properly placed in service during the first quarter Depreciation Rate for Recovery Period S-Year Year 1 35.00% 25.00% Year 2 26.00 Year 3 15.60 13.31 Year 4 11.01 10.93 Years 11.01 Year 6 1.35 8.74 Year 7 5.73 Years 1.09 TABLE 25 MACRS AGA-Quarter Convention: For property placed in serice during the ate quente Depreciation Rate for Recovery Period 5-Year 1-Year Year 1 17.53% Year 2 30.00 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 3.57 Year 7 Years TABLE 2 MACRS Mid-Quarter Convention: For gropery placed in serie during the bird quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.7136 Year 2 34.00 25.51 20.40 18.22 Year 4 12.24 13.02 Years 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Years 5.33 TABLE 2d MACRS-Mid Quarter Conventiou: For property placed is crice during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.5796 Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Years 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 3 7.64 Month 9 Month 8 1.364% 1.061 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 Month 10 Month 11 Month 12 0.758% 0.455% 0.152 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 Year 29 0.152 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.636 3.636 3.637 3.637 3.637 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 1.667 0.455 0.758 1.061 1.364 Mouth 12 0.1329 3.173 3.173 3.175 3.174 3.175 3.174 3.175 3.174 3.173 TABLE 4 Nouresidential Real Property Mid-Month Contentios Straight List315 Years (for assets placed in service before May 13, 1993) Mouth Property Placed in Service Mosch 1 Mouch 2 Mouch 3 Mouth 4 Months Mouch 6 Mouch 7 Mouch 8 Mouch 9 Year 1 3.0429 2.775% 2915% 1.934% 1.720% 1.190% 0.926% Year 2-7 3.173 3.175 3.175 3.173 3.173 3.175 3.173 3.173 3.173 Years 3.173 3.173 3.174 3.174 3.173 3.175 Year 9 3.174 3.173 3.174 3.173 3.173 3.173 Year 10 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 Year 11 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 Year 12 3.173 3.173 3.173 3.174 3.173 3.174 3.175 Year 13 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.174 Year 14 3.173 3.174 3.173 3.173 3.173 3.173 Year 15 3.174 3.173 3.174 3.173 3.175 3.174 3.173 3.174 Year 16 3.173 3.174 3.174 3.173 3.174 3.173 3114 Year 17 3.174 3.173 3.173 3.173 3.174 3.179 Year 15 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 Year 19 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 Year 20 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.173 Year 21 3.174 3.173 3.174 3.173 3.173 3.174 3.173 3.174 Year 22 3.173 3.174 3.173 3.174 3.173 3.173 3.174 3.173 Year 23 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.113 3.174 Year 24 3.173 3.174 3.175 3.174 3.175 3.174 3.173 3.175 Year 25 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 Year 26 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 Year 27 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 Year 25 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.173 Year 29 3.174 3.173 3.174 3.173 3.173 3.174 3.173 3.174 Year 30 3.173 3.174 3.173 3.174 3.173 3.173 3.173 Year 31 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 Year 32 1.720 1.954 2313 3.173 3.174 3.173 Year 33 0.132 0.397 0.661 Mouch 10 0.661% 3.173 3.173 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.173 3.174 0.925 Month 11 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 1.190 9.194 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.433 TABLE 5 Nouresidential Real Property Mid-Mouth Convention Straight List39 Years (for assets placed in service ou or after May 13, 1993) Mouth Property Placed in Service Month 1 Mouch 2 Month 3 Mouth 4 Mouch 5 Mouth 6 Mouth Mouch 8 Mouth 9 Year 1 2.461% 2.0339% 1.519% 1.605% 1.391% 1.177% 0.963% 0.7499 Year 2-39 2.364 2.354 2.354 2.364 2.354 2.354 2.354 2.354 Year 40 0.107 0.321 0.335 0.749 0.963 1177 1391 1.603 1319 Mouch 10 0.535% 2.354 Month 11 0.321% 2.564 Mostk 12 0.1073 2.564 2.461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 2020* 10.100** 16.100 9,700 5.760 Year Placed in Service 2019 2018 10.100* 10,000* 16.100 16,000 9.700 9,600 5.760 5.760 2017 3,160* 5.100 3.050 1.875 3 4 and after *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same limitations as in 2019 for 2020. **$8,000 additional depreciation is allowed when bonus depreciation is claimed (9168(k) (2) (F)]. Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2019. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2019: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 Date Placed in Service 02/03/2019 07/22/2019 08/17/2019 *Not considered a luxury automobile. During 2019, Karane was very successful and had no $179 limitations) and decided to acquire more assets in 2020 to increase its production capacity. These are the assets acquired during 2020: Asset Computers & info. system Luxury autot Assembly equipment Storage building Cost $ 400,000 80,000 1,200,000 700,000 Date Placed in Service 03/31/2020 05/26/2020 08/15/2020 11/13/2020 fUsed 100% for business purposes. Karane generated taxable income in 2020 of $1,732,500 for purposes of computing the $179 expense limitation. (Use MACRS Table 1, Table 2. Table 3, Table 4, Table 5, and Exhibit 10-10.) (Leave no answer blank. Enter zero if applicable. Input all the values as positive numbers.) a. Compute the maximum 2019 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description Office furniture Machinery Delivery truck Total 2019 Cost Recovery Cost $179 Expense $ 150,000 $ $ 1,560,000 1,000,000 X 40,000 0 $ 1,750,000 $ 1,000,000 MACRS Current Total Cost MACRS Recovery Basis Depreciation Deduction 150,000 $ 21,435$ 21,435 560,000 80,024 X 1,080,024 40,000 8,000 8.000 750,000 $ 109,459 1,109,459 b. Compute the maximum 2020 depreciation deductions, including $179 expense (ignoring bonus depreciation). Answer is complete but not entirely correct. Description Cost Sec. 179 Expense MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ 2019 Assets Office furniture Machinery Used delivery truck 150,000 $ 1,560,000 40,000 0$ 0 0 150,000 $ 560,000 $ 40,000 21,435 X $ 80,024 X 8,000 21,435 80.024 8,000 2020 Assets Computers & Info. System Luxury Auto Assembly Equipment Storage Building 22,000 X 0 X 400,000 80,000 1,200,000 700,000 110,000 X 70,000 1,200,000 X 312,000 10.000 290,000 10,000 0 X 700,000 X 240,000 > 240,000 700,000 0 0 X Total 2020 Cost Recovery $ 4,130,000 $ 1,000,000 $ 2,130,000 $ 371,459 $ 1,371,459 c. Compute the maximum 2020 depreciation deductions, including $179 expense, but now assume that karane would like to take bonus depreciation. Answer is complete but not entirely correct. Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Total Cost Recovery Deduction $ $ 2019 Assets Office Furniture Machinery Used Delivery Truck 150,000 1,560,000 0$ 0 0 0 0 0 X $ 195,000 X 15,000 X 0 47,756 47.756 X 4.800 X 40.000 4.800 40.000 X 40,000 X 7,500 X 7,500 X 1,500 X 9,000 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 80,000 1,200,000 700,000 0 1,200,000 0 8,000 0 X 0 72,000 0 700.000 3,160 x 0 2,247 11,160 1,200,000 2,247 Total 2020 Cost Recovery $ 3,770,000 $ 1,240,000 $ 15,500 $ 989,500 $ 59,463 $ 1,274,963 d. Now assume that during 2020, Karane decides to buy a competitor's assets for a purchase price of $1,350,000. Compute the maximum 2020 cost recovery, including $179 expense and bonus depreciation. Karane purchased the following assets for the lump- sum purchase price: (Round your final answers to the nearest whole dollar amount.) Asset Inventory Office furniture Machinery Patent Goodwill Building Land Cost $ 220,000 230,000 250,000 198,000 2,000 430,000 20,000 Date Placed in Service 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 09/15/2020 Description Cost Sec. 179 Expense Bonus MACRS Basis Current MACRS Depreciation Current Amortization Total Cost Recovery Deduction $ 2019 Assets Office Furniture Machinery Used Delivery Truck 0 0 0 2020 Assets Computers & Info System Luxury Auto Assembly Equipment Storage Building 0 0 0 0 0 Inventory Office Furniture Machinery Patent Goodwill Building Land 0 0 0 0 Totals 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 20-Year 3.750% 7.219 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14.81 19.20 17.49 14.40 8.55 Year 4 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 6.677 6.177 5.713 5.285 4.888 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 Year 11 3.28 5.91 4.461 4.462 4.461 Year 12 5.90 Year 13 5.91 4.462 Year 14 5.90 4.461 4.462 Year 15 5.91 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 1. Year TABLE 2 MACRS Mid-Quarter Couveuties: For properly placed in service during the first quarter Depreciation Rate for Recovery Period S-Year Year 1 35.00% 25.00% Year 2 26.00 Year 3 15.60 13.31 Year 4 11.01 10.93 Years 11.01 Year 6 1.35 8.74 Year 7 5.73 Years 1.09 TABLE 25 MACRS AGA-Quarter Convention: For property placed in serice during the ate quente Depreciation Rate for Recovery Period 5-Year 1-Year Year 1 17.53% Year 2 30.00 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 3.57 Year 7 Years TABLE 2 MACRS Mid-Quarter Convention: For gropery placed in serie during the bird quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.7136 Year 2 34.00 25.51 20.40 18.22 Year 4 12.24 13.02 Years 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Years 5.33 TABLE 2d MACRS-Mid Quarter Conventiou: For property placed is crice during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.5796 Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Years 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 3 7.64 Month 9 Month 8 1.364% 1.061 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.637 3.636 Month 10 Month 11 Month 12 0.758% 0.455% 0.152 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line27.5 Years Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Year 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 12 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 16 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 20 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 26 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 Year 29 0.152 3.636 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.637 3.636 3.636 3.637 3.637 3.637 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 1.667 0.455 0.758 1.061 1.364 Mouth 12 0.1329 3.173 3.173 3.175 3.174 3.175 3.174 3.175 3.174 3.173 TABLE 4 Nouresidential Real Property Mid-Month Contentios Straight List315 Years (for assets placed in service before May 13, 1993) Mouth Property Placed in Service Mosch 1 Mouch 2 Mouch 3 Mouth 4 Months Mouch 6 Mouch 7 Mouch 8 Mouch 9 Year 1 3.0429 2.775% 2915% 1.934% 1.720% 1.190% 0.926% Year 2-7 3.173 3.175 3.175 3.173 3.173 3.175 3.173 3.173 3.173 Years 3.173 3.173 3.174 3.174 3.173 3.175 Year 9 3.174 3.173 3.174 3.173 3.173 3.173 Year 10 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 Year 11 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 Year 12 3.173 3.173 3.173 3.174 3.173 3.174 3.175 Year 13 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.174 Year 14 3.173 3.174 3.173 3.173 3.173 3.173 Year 15 3.174 3.173 3.174 3.173 3.175 3.174 3.173 3.174 Year 16 3.173 3.174 3.174 3.173 3.174 3.173 3114 Year 17 3.174 3.173 3.173 3.173 3.174 3.179 Year 15 3.173 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 Year 19 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 Year 20 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.173 Year 21 3.174 3.173 3.174 3.173 3.173 3.174 3.173 3.174 Year 22 3.173 3.174 3.173 3.174 3.173 3.173 3.174 3.173 Year 23 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.113 3.174 Year 24 3.173 3.174 3.175 3.174 3.175 3.174 3.173 3.175 Year 25 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 Year 26 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 Year 27 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 Year 25 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.173 Year 29 3.174 3.173 3.174 3.173 3.173 3.174 3.173 3.174 Year 30 3.173 3.174 3.173 3.174 3.173 3.173 3.173 Year 31 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 Year 32 1.720 1.954 2313 3.173 3.174 3.173 Year 33 0.132 0.397 0.661 Mouch 10 0.661% 3.173 3.173 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.173 3.174 0.925 Month 11 0.397% 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.173 3.174 3.173 3.174 3.175 3.174 3.175 3.174 3.175 1.190 9.194 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 1.433 TABLE 5 Nouresidential Real Property Mid-Mouth Convention Straight List39 Years (for assets placed in service ou or after May 13, 1993) Mouth Property Placed in Service Month 1 Mouch 2 Month 3 Mouth 4 Mouch 5 Mouth 6 Mouth Mouch 8 Mouth 9 Year 1 2.461% 2.0339% 1.519% 1.605% 1.391% 1.177% 0.963% 0.7499 Year 2-39 2.364 2.354 2.354 2.364 2.354 2.354 2.354 2.354 Year 40 0.107 0.321 0.335 0.749 0.963 1177 1391 1.603 1319 Mouch 10 0.535% 2.354 Month 11 0.321% 2.564 Mostk 12 0.1073 2.564 2.461 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 2 2020* 10.100** 16.100 9,700 5.760 Year Placed in Service 2019 2018 10.100* 10,000* 16.100 16,000 9.700 9,600 5.760 5.760 2017 3,160* 5.100 3.050 1.875 3 4 and after *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same limitations as in 2019 for 2020. **$8,000 additional depreciation is allowed when bonus depreciation is claimed (9168(k) (2) (F)]
