Question
During the period April 2018 October 2018, Shirley spent $53,000 exploring the feasibility of starting the motorcycle repair business. Shirley started her new business
During the period April 2018 – October 2018, Shirley spent $53,000 exploring the feasibility of starting the motorcycle repair business. Shirley started her new business on 11/1/2018. During 2019, she received cash payments totaling $57,000 from customers, and paid the following expenditures in connection with her business:
Cost of an engine diagnostic machine (5-year property) $ 23,000
Cost of new equipment (7-year property) 12,000
Cost of new tools (5-year property) 8,000
Supplies 4,000
Advertising fees 3,000
Liability insurance premiums 2,000
For the diagnostic machine, Shirley elected not to expense any portion of the cost allowed under the provisions of § 179, but rather elected to take the maximum allowed depreciation. For the new equipment, Shirley elected to take the maximum § 179 expense allowed. For the new tools, Shirley elected to take MACRS depreciation rather than either § 179 expense or additional first-year (bonus) depreciation. The diagnostic machine, plus the new equipment, plus the new tools, were placed into service on 2/1/2019. The diagnostic machine, equipment, and tools are used exclusively for business purposes.
Find the amounts for depreciation for all three assets
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