MACRS (LO. 6) Harold purchases the following business assets on the dates indicated Asset Date Purchased Cost Recovery Period Photocopy equipment Dump truck Bus $50,000 $300,000 $511,000 12/24/17 Refer to the MACRS Depreciation Tables to answer the following questions a. Harold's 2017 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 b. What could Harold do to maximize his 2017 deduction? Because the calculation of purchases for purposes of the 4096 rule uses the depreciable basis placed in service each quarter Harold can avoid the mid-quarter convention by electing to expense $510,000 of the bus . This reduces the depreciable basis of the bus Vto $1,000and the total depreciable basis placed in service during the year to $351,000 Based on the election to expense determined above, Harold will be able to use the regular MACRS method. His total deduction is $ of depreciation in 2017 ( election to expense plus of regular MACRS cost-recovery) MACRS (LO. 6) Harold purchases the following business assets on the dates indicated Asset Date Purchased Cost Recovery Period Photocopy equipment Dump truck Bus $50,000 $300,000 $511,000 12/24/17 Refer to the MACRS Depreciation Tables to answer the following questions a. Harold's 2017 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 b. What could Harold do to maximize his 2017 deduction? Because the calculation of purchases for purposes of the 4096 rule uses the depreciable basis placed in service each quarter Harold can avoid the mid-quarter convention by electing to expense $510,000 of the bus . This reduces the depreciable basis of the bus Vto $1,000and the total depreciable basis placed in service during the year to $351,000 Based on the election to expense determined above, Harold will be able to use the regular MACRS method. His total deduction is $ of depreciation in 2017 ( election to expense plus of regular MACRS cost-recovery)