Modified Accelerated Cost Recovery System (MACRS), Listed Property, Limitation on Depreciation of Luxury Automobiles (LO 7.4, 7.6, 7.7)

During 2016, Palo Fiero purchases the following property for use in his calendar year-end manufacturing business:

Item	Date Acquired	Cost
Manufacturing equipment (7 year)	June 2	$ 37,000
Office furniture	September 15	4,500
Office computer	November 18	3,800
Passenger automobile (used 90 percent for business)	May 31	37,500
Warehouse	April 23
Building		170,000
Land		135,000

Palo 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. Enter amounts as positive numbers.