n

2019,

Andes

Corporation purchases

$1.5

million of machinery (7-year property) and places it into service in its business.

1(Click

the icon to view the MACRS half-year convention rates.)Read the

requirements2.

a. What are

Andes'

depreciation deductions for

2019

and

2020

if

Andes

does not elect Sec. 179 expensing and elects out of bonus depreciation. (Enter amounts in whole numbers, do not enter amounts in millions. Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a "0" for any zero amounts.)

	2019	2020
Sec. 179 expense
Bonus depreciation
MACRS depreciation
Total depreciation

b.What are

Andes'

depreciation deductions for

2019

and

2020

if

Andes

elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation. (Enter amounts in whole numbers, do not enter amounts in millions. Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a "0" for any zero amounts.)

	2019	2020
Sec. 179 expense
Bonus depreciation
MACRS depreciation
Total depreciation

c.What are

Andes'

depreciation deductions for

2019

and

2020

if

Andes

does not elect Sec. 179 expensing and does not elect out of bonus depreciation. (Enter amounts in whole numbers, do not enter amounts in millions. Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a "0" for any zero amounts.)

	2019	2020
Sec. 179 expense
Bonus depreciation
MACRS depreciation
Total depreciation

1: Reference

General Depreciation

System-MACRS

Personal Property Placed in Service After 12/31/86

Applicable Convention: Half-Year

Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

Recovery period and Depreciation Rates

Recovery Year	3-Year	5-Year	7-Year	10-Year	15-Year	20-Year
Year 1	33.33	20.00	14.29	10.00	5.00	3.750
Year 2	44.45	32.00	24.49	18.00	9.50	7.219
Year 3	14.81	19.20	17.49	14.40	8.55	6.677
Year 4	7.41	11.52	12.49	11.52	7.70	6.177
Year 5		11.52	8.93	9.22	6.93	5.713
Year 6		5.76	8.92	7.37	6.23	5.285
Year 7			8.93	6.55	5.90	4.888
Year 8			4.46	6.55	5.90	4.522
Year 9				6.56	5.91	4.462
Year 10				6.55	5.90	4.461
Year 11				3.28	5.91	4.462
Year 12					5.90	4.461
Year 13					5.91	4.462
Year 14					5.90	4.461
Year 15					5.91	4.462
Year 16					2.95	4.461
Year 17						4.462
Year 18						4.461
Year 19						4.462
Year 20						4.461
Year 21						2.231

2: Requirements

What are

Andes'

depreciation deductions for

2019

and

2020

in each of the following situations? Assume the half-year convention applies and this is the only property

Andes

places into service in

2019.

a.	Andes does not elect Sec. 179 expensing and elects out of bonus depreciation.
b.	Andes elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation.
c.	Andes does not elect Sec. 179 expensing and does not elect out of bonus depreciation.