Please give detailed explanation. Thank you!
Required information Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore 179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2,and Table 5.) Date Placed Original. Asset in Service Basis Machinery October 25 $ 110,000 Computer equipment February 3 $ 50,000 Used delivery truck* March 17 $ 63.000 Furniture April. 22 $ 190,000 Total. $ 413.000 ' 'The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualied improvement property) to its office building on May 12 at a cost of $700,000. x. .1 a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) _:I Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3 14. 81 19. 20 17 .49 14.40 8.55 6.677 _ear 5 11 .2 8. 93 9. 22 6.93 5.713 Year -6 5- .76 8-. 92 7-. 37 6.23 5.285 Year 8 4 .6 . 55 5.90 4.522 Year -9 6-. 56 5.91 4.462 Year 1 3 .8 5.91 4.462 Year -12 5.90 4.461 Year 4 5.90 4.461 Year -15 5.91 4.462 Year 7 4.462 Year -18 4.461 Year 0 4.461 Year -21 2.231 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 2b 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 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 3.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c 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 25.5111.37 11.97 Year 5 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period S-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25 .51 Year 3 20.40 18 .22 Year 4 1 2 .24 1 3 .02 Year 5 11 .30 9.30 WT 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period S-Year 7-Year Year 1 5.00% 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 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461
