Modified Accelerated Cost Recovery System (MACRS) (LO 7.4)

Calculate the following:

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a. The first year of depreciation on a residential rental building costing $200,000 purchased June 2, 2015. $

b. The second year of depreciation on a computer costing $1,500 purchased in May 2014, using the half-year convention and accelerated depreciation considering any bonus depreciation taken. $

c. The first year of depreciation on a computer costing $2,800 purchased in May 2015, using the half-year convention and straight-line depreciation with no bonus depreciation. $

d. The third year of depreciation on business furniture costing $8,000 purchased in March 2013, using the half-year convention and accelerated depreciation but no bonus depreciation.