Problem 8-34 (LO. 2)

Weston acquires a new office machine (seven-year class asset) on November 2, 2015, for $75,000. This is the only asset Weston acquired during the year. He does not elect immediate expensing under 179. He claims the maximum additional first-year depreciation deduction. On September 15, 2016, Weston sells the machine.

Click here to accessExhibit 8.1andExhibit 8.4of the textbook.

a.What MACRS convention applies to the machine?

b.Weston's cost recovery for 2015 is $and for 2016 is $.