Questions: Complete eSys Answers's Form 4562 for Year 1 ( the most current form available).
[The following information applies to the questions displayed below.] While completing undergraduate schoolwork in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $10,000, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15 , Year 2 , for $15,000 and spent $3,000 getting it ready to put into service. The pinball machine cost $4,000 and was placed in service on July 1 , Year 2. Table 4 and Table 5.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Table 1 MACRS Half-Year Convention TABLE 2a MACRS Mid-Quarter Convention: For property placed in senvice during the first quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 35.00% & 25.00% \\ \hline Year 2 & 26.00 & 21.43 \\ \hline Year 3 & 15.60 & 15.31 \\ \hline Year 4 & 11.01 & 10.93 \\ \hline Year 5 & 11.01 & 8.75 \\ \hline Year 6 & 1.38 & 8.74 \\ \hline Year 7 & & 8.75 \\ \hline Year 8 & & 1.09 \\ \hline \end{tabular} TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 25.00% & 17.85% \\ \hline Year 2 & 30.00 & 23.47 \\ \hline Year 3 & 18.00 & 16.76 \\ \hline Year 4 & 11.37 & 11.97 \\ \hline Year 5 & 11.37 & 8.87 \\ \hline Year 6 & 4.26 & 8.87 \\ \hline Year 7 & & 8.87 \\ \hline Year 8 & & 3.34 \\ \hline \end{tabular} TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 9.58 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular} TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline Year 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% \\ \hline Year 2-9 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 10 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 11 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 12 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 13 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 14 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 15 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 16 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 17 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 18 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 19 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 20 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 21 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 22 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 23 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 24 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 25 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 26 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 27 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 28 & 1.97 & 2.273 & 2.576 & 2.879 & 3.182 & 3.485 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 29 & & & & & & & 0.152 & 0.455 & 0.758 & 1.061 & 1.364 & 1.667 \\ \hline \end{tabular} TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline Year 1 & 3.042% & 2.778% & 2.513% & 2.249% & 1.984% & 1.720% & 1.455% & 1.190% & 0.926% & 0.661% & 0.397% & 0.132% \\ \hline Year 2-7 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 \\ \hline Year 8 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 \\ \hline Year 9 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 10 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 11 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 12 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 13 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 14 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 15 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 16 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 17 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 18 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 19 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 20 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 21 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 22 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 23 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.115 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 24 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 25 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 26 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 27 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 28 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 29 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 30 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 31 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 32 & 1.720 & 1.984 & 2.249 & 2.513 & 2.778 & 3.042 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 33 & & & & & & & 0.132 & 0.397 & 0.661 & 0.926 & 1.190 & 1.455 \\ \hline \end{tabular} TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline 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% \\ \hline 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 \\ \hline 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 \\ \hline \end{tabular} [The following information applies to the questions displayed below.] While completing undergraduate schoolwork in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $10,000, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury auto) and a pinball machine (to help attract new employees). They bought the van on June 15 , Year 2 , for $15,000 and spent $3,000 getting it ready to put into service. The pinball machine cost $4,000 and was placed in service on July 1 , Year 2. Table 4 and Table 5.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Table 1 MACRS Half-Year Convention TABLE 2a MACRS Mid-Quarter Convention: For property placed in senvice during the first quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 35.00% & 25.00% \\ \hline Year 2 & 26.00 & 21.43 \\ \hline Year 3 & 15.60 & 15.31 \\ \hline Year 4 & 11.01 & 10.93 \\ \hline Year 5 & 11.01 & 8.75 \\ \hline Year 6 & 1.38 & 8.74 \\ \hline Year 7 & & 8.75 \\ \hline Year 8 & & 1.09 \\ \hline \end{tabular} TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 25.00% & 17.85% \\ \hline Year 2 & 30.00 & 23.47 \\ \hline Year 3 & 18.00 & 16.76 \\ \hline Year 4 & 11.37 & 11.97 \\ \hline Year 5 & 11.37 & 8.87 \\ \hline Year 6 & 4.26 & 8.87 \\ \hline Year 7 & & 8.87 \\ \hline Year 8 & & 3.34 \\ \hline \end{tabular} TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 9.58 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular} TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline Year 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% \\ \hline Year 2-9 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 10 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 11 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 12 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 13 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 14 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 15 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 16 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 17 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 18 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 19 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 20 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 21 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 22 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 23 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 24 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 25 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 26 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 27 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 & 3.637 \\ \hline Year 28 & 1.97 & 2.273 & 2.576 & 2.879 & 3.182 & 3.485 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 & 3.636 \\ \hline Year 29 & & & & & & & 0.152 & 0.455 & 0.758 & 1.061 & 1.364 & 1.667 \\ \hline \end{tabular} TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline Year 1 & 3.042% & 2.778% & 2.513% & 2.249% & 1.984% & 1.720% & 1.455% & 1.190% & 0.926% & 0.661% & 0.397% & 0.132% \\ \hline Year 2-7 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 \\ \hline Year 8 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 & 3.175 \\ \hline Year 9 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 10 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 11 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 12 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 13 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 14 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 15 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 16 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 17 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 18 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 19 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 20 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 21 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 22 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 23 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.115 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 24 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 25 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 26 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 27 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 28 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 29 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 30 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 31 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 \\ \hline Year 32 & 1.720 & 1.984 & 2.249 & 2.513 & 2.778 & 3.042 & 3.175 & 3.174 & 3.175 & 3.174 & 3.175 & 3.174 \\ \hline Year 33 & & & & & & & 0.132 & 0.397 & 0.661 & 0.926 & 1.190 & 1.455 \\ \hline \end{tabular} TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Month Property Placed in Service } \\ \hline & Month 1 & Month 2 & Month 3 & Month 4 & Month 5 & Month 6 & Month 7 & Month 8 & Month 9 & Month 10 & Month 11 & Month 12 \\ \hline 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% \\ \hline 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 \\ \hline 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 \\ \hline \end{tabular}
