Part I. IRS Publication 534 and Publication 946

Determine the amount of depreciation allowed for each case:

Case 1: A taxpayer bought and put into use a piece of machinery in 2012 that cost him $90,000 with a useful life of 7 years. Determine the depreciation expense for recovery year 3.

Case 2: A taxpayer bought and put into use a piece of machinery in 2012 that cost him $200,000 with a useful life of 5 years. Determine the depreciation expense for recovery year 5.