MACRS (LO. 6) Harold purchases the following business assets on the dates indicated: Asset Date Purchased Cost Recovery Period Photocopy equipment 2/14/19 $50,000 5 Dump truck 7/16/19 $300,000 5 Bus 12/24/19 $1,021,000 5 Refer to the MACRS Depreciation Tables to answer the following questions. a. Harold's 2019 cost-recovery deduction if he elects not to claim bonus depreciation and does not elect to expense any of the assets under Section 179 is $ 113,550 b. What could Harold do to maximize his 2019 deduction? Because the calculation of purchases for purposes of the 40% rule uses the depreciable basis placed in service each quarter , Harold can avoid the mid-quarter x convention by electing to expense $1,020,000 of the bus . This reduces the depreciable basis of the bus X to $1,000 and the total depreciable basis placed in service during the year to $351,000 1,020,000 x of depreciation in 2019 Based on the election to expense determined above, Harold will be able to use the regular MACRS method. His total deduction is $ 1,371,000 X election to expense plus $ 1,090,200 X of regular MACRS cost-recovery)