Please help with red part.

Exercise 8-25 (Algorithmic) (LO. 2, 3) Diana acquires, for $70,400, and places in service a 5-year class asset on December 19, 2018. It is the only asset that Diana acquires during 2018. Diana does not elect immediate expensing under 179. She elects additional first-year deprecation. Click here to access the depreciation table to use for this problem. Diana's total cost recovery deduction for the asset is $ 36,960 X for 2018. Feedback Check My Work Additional first-year depreciation (also referred to as bonus depreciation) allows taxpayers to take an additional amount of cost recovery in the year qualified property is placed in service. Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year (200% DB) (200% DB) (200 % DB) (200% DB) Year (150% DB) (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 32.00 2 44.45 2449 18.00 9.50 7.219 14,40 14,81 19.20 17.49 8.55 6.677 4 7,41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 6.55 5.90 8.93 4,888 Exhibit 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Mid- Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table 3-Year First Quarter Second Quarter Third Quarter Recovery Year Fourth Quarter 1 58.33 41.67 25.00 8.33 2 27,78 38.89 50.00 61.11 5-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 35.00 25.00 15.00 5,00 2 26.00 30.00 34.00 38.00 7-Year Recovery Year First Quarter Second Quarter Third Quarter Fourth Quarter 1 25,00 17.85 10.71 3.57 2 21,43 23.47 25,51 27,55 Wi MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention Exhibit 8.5 For Property Placed in Service after December 31, 1986 Other Recovery Years Last Recovery Year % First Recovery Year MACRS Class Years % Year % 3-year 16.67 2-3 33.33 4 16.67 5-year 10.00 2-5 20.00 6 10.00 7-year 7.14 2-7 14.29 7.14 10-year 5.00 2-10 10.00 11 5.00 15-year 3.33 2-15 6.67 16 3.33 20-year 2,50 2-20 5.00 21 2.50 Note: The last two rows are used for qualified improvement property (15-year normal MACRS; 20-year ADS). Exhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table*) Recovery Year 3-Year 150% 5-Year 7-Year 150% 9.5-Year 10-Year 150% 12-Year 150% 150% 150% 25.00 15.00 10.71 7,89 7,50 6.25 37.50 25.50 19.13 14.54 13.88 11.72 3 17.85 11.79 10.25 25.00* 15.03 12.25 10.02 12.50 8.97 16.66 12.25** 10.31 16.66 12.25 9.17* 8.74* 7.85 7.33 6 8.33 12.25 9.17 8.74 7 12.25 9.17 8.74 7.33 6.13 9.17 8.74 7.33 9.17 8.74 7.33 10 9.16 8.74 7.33 11 4.37 7.32 7.33 12 13 3.66 The fiqures in this table are taken from the official table that appears in Rev.Proc. 87-57, 1987-2 C.B. 687. Because of its length, the complete table is not presented Switchover to straight-line depreciation. Exhibit 8.7 ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) 5-Year Class 10-Year Class Recovery Year 12-Year Class 1 10.00 5.00 4,17 2 20.00 10.00 8.33 10.00 20.00 8.33 A 20.00 10.00 8.33 20.00 10.00 8.33 6 10.00 8.33 10.00 7 10.00 8.34 10.00 8.33 10.00 8.34 m t N co ay Exhibit 8.8 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention (Percentage Rates) AA A For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property Recovery Year(s) The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): ** 4 1 2 3. 5 7 8 9 10 11 12 1 3.485 3.182 2.879 2,576 2.273 1.970 1.667 1.364 1.061 0.758 0.455 0.152 3,636 2-18 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3,636 3,636 19-27 3.637 3.637 3.637 3.637 3,637 3.637 3.637 3.637 3,637 3.637 3.637 3.637 28 1.970 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 1.06 29 0.000 0.000 0.000 0.000 0.000 0000 0.152 0.455 0.758 1.364 1.667 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Recovery Year(s) 8 9 1 4 6 7 10 11 12 3.042 1 2.778 2.513 2.249 1.984 1.720 1.455 1.190 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 20-31 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.175 32 1.720 1,984 2.249 2.513 2,778 3.042 3.175 3.179 3.175 3.175 3.175 0.000 0.661 1.455 33 0.000 0,000 0.000 0,000 0000 0.132 0.397 0.926 1.190 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property rthe Month in the First Year the Property Is Placed in Service): The Applicable Percentage Is (Use the Column Recovery Year(s) 1 2 4 6 7 10 11 12 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 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 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1605 1.819 2.033 2.247 2.461 The official tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances, this will produce a Vindows difference of 001 for the last digit when compared with the official tables Window Exhibit 8.9 ADS Straight-Line for Real Property Assuming Mid-Month Convention (Percentage Rates) For Property Placed in Service after December 31, 2017; 30-Year Residential Rental Property Recovery Year Month Placed in Service 4 6 1 3 5 7 8 10 11 12 3.194 2.917 2.639 2.361 2.083 1.806 1.528 1.250 0.972 0.694 0.417 0.139 2-30 3.333 3.333 3.333 3.333 3.333 3.333 3,333 3,333 3.333 3.333 3,333 3.333 2,917 31 0.139 0.417 0.694 0.972 1.250 1,528 1806 2.083 2.361 2.639 3.194 For Property Placed in Service after December 31, 1986; 40-Year Nonresidential Real Property Recovery Year Month Placed in Service 4 6 8 2 3 5 7 9 10 11 12 2,396 2.188 1.979 1.771 1.563 1,354 1,146 0.938 0.729 0.521 0.313 0.104 2-40 2,500 2.500 2.500 2,500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.187 41 0.104 0.312 0.521 0.729 0.937 1.146 1.354 1.562 1.771 1.979 2.396