Please answer both a and b.

Required information Problem 10-55 (LO 10-2, LO 10-3) (Algo) [The following information apples to the questions displayed below) Harris Corporation is a technology start-up in its second year of operations. The company didn't purchase any assets this year but purchased the following assets in the prior year Placed in Asset Service Basis Office equipment August 14 $ 11,000 Manufacturing equipment April 15 78,000 Computer system June 1 26,000 Total $ 115,000 Harris did not know depreciation was tax deductible until it hired an accountant this year and didn't claim any depreciation deduction in its first year of operation. (Use MACRS Table 1 and Table 2.) . Problem 10-55 Part a (Algo) a. What is the maximum amount of depreciation deduction Harris Corporation can deduct in its second year of operation? (Leave no answer blank. Enter zero if applicable.) Depreciation deduction Table 1 MACRS Half-Year Convention Year 1 20-Year 3.750% 7.219 6.677 6.177 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 8.93 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 3.28 5.91 5.90 5.91 5.90 5.91 5.713 5.285 4.888 4.522 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 2.95 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 2347 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 1137 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 24 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 4.00 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 28 MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7. Year Year 1 5.0096 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 Required information Problem 10-55 (LO 10-2, LO 10-3) (Algo) [The following information applies to the questions displayed below) Harris Corporation is a technology start-up in its second year of operations. The company didn't purchase any assets this year but purchased the following assets in the prior year. Placed in Asset Service office equipment Basis August 14 $ 11,000 Manufacturing equipment April 15 78,000 Computer systen June 1 26,000 Total $ 115,000 Harris did not know depreciation was tax deductible until it hired an accountant this year and didn't claim any depreciation deduction in its first year of operation (Use MACRS Table 1 and Table 2) Problem 10-55 Part b (Algo) b. What is the basis of the office equipment at the end of the second year? (Leave no answer blank. Enter zero if applicable) Basis of office equipment $