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. Table and Table 5.) Asset Machinery Computer equipment Used delivery truck Purniture Total Date Placed in Service 25-Oct 03-Feb 17-Mar 22 - Apr Original Basis $ 98,000 $ 38,000 $ 51,000 $ 178,000 $365,000 "The delivery truck is not a luxury automobile In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $580,000 a. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect 5179 expense and elects out of bonus depreciation? (Round your intermediate calculations to the nearest whole dollar amount.) MACRS depreciation Table 1 MACRS Half-Year Convention 20-Year 3.750% 7.219 6.677 6.177 5.713 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 5.285 4.888 4.522 4.462 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 8.93 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 2.95 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 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 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 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 8.87 TABLE 2 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 TABLES 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 Manth 6 Month 7 Month 4 Month Il Year 1 | Year 2-19 | Year to Mouth 2461 2001 0.107 Month 2 2.247% 2061 0.321 Month 3 20339 2564 0.535 1819 2.561 1.00 2.564 0.963 1 391 2566 1.177 1.1775 2464 19 Month 0.9619 2564 Month 9 0.7495 2564 1819 Month 10 0535 2.564 2033 Month 12 0.107 2.564 2.461 2.564 227
