Question
On July 17, 2014, Stinson Corporation, a calendar year taxpayer engaged in farming, purchased farm equipment (7-year property) for $52,800, a greenhouse for growing crops
On July 17, 2014, Stinson Corporation, a calendar year taxpayer engaged in farming, purchased farm equipment (7-year property) for $52,800, a greenhouse for growing crops for sale (10-year property) for $94,500, and roads and fences (15-year property) for $44,550. These were the only asset purchases by Stinson Corporation during 2014. Due to a decline in the agriculture business, Stinson decided to sell the farm equipment, greenhouse, and roads and fences purchased in 2014 as part of a sale of its entire farm on August 25, 2019. Compute Stinson Corporations allowable MACRS depreciation for each of these assets both for the year of purchase (2014) and the year of sale (2019) assuming that Stinson does not use Section 179 expensing or bonus deprecation for any of the assets.
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