Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 8.2, 8.4, 8.5)

During 2019, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:

ItemDate AcquiredCostManufacturing equipment (7 year)June 2$40,000Office furnitureSeptember 156,000Office computerNovember 182,000Passenger automobile

(used 90 percent for business)

May 31

54,000WarehouseJune 23Building165,000Land135,000

Pepe uses the accelerated depreciation method under MACRS and takes bonus depreciation.

Complete Form 4562, Depreciation and Amortization to determine the depreciation expense.

If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Enter amounts as positive numbers.

Click here to access thedepreciation tablesand here to viewTable 8.1: Recovery Periods for Assets Placed in Service After 1986andAnnual automobile depreciation limitations.