Required information Problem 10-48 (LO 10-2) The following information applies to the questions displayed below At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year Cost Acquired Basis Date Computer equipment Furniture Pickup truck Commercial building 3/23 5,000 5/12 $ 7,000 9/15 10,000 10/11 $270,000 Assuming Dee does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1. Table 2, Table 3, Table 4 and Table 5) (Round your answers to the nearest whole dollar amount.) a. What is Dee's year 1 cost recovery for each asset? Year 1 Cost Asset Furniture Total ABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-year 5-year 7-year 10-year 15-year 20-year 20.00 32.00 19.20 11.52 11.52 5.76 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 33.33 44.45 14.81 7.41 3.750 7.219 6.677 5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 2 3 4 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 6 8 9 10 12 13 14 16 17 18 19 20 21 Depreciation Rate for Recovery Period 7-year 35.00% 26.00 15.60 11.01 11.01 25.00% 2143 15.31 10.93 8.75 8.74 8.75 1.09 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 7-year 25.00% 30.00 18.00 1 785% 23.47 16.76 11.97 8.87 8.87 8.87 1137 4.26 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter n Rate for Recovery 15.00% 34.00 20.40 10.71% 25.51 18.22 13.02 9.30 8.85 11.30 7.06 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 7-year 5.00% 38.00 22.80 3.57% 27.55 19.68 14.06 0.04 8.73 8.73 7.64 10.94 9.58 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-275 Years Month Property Placed in Service 1970% 3.636 3.485 % 2.879% | 2.578% | 2.273% 1.667% 1061 % | 0.758% | 0.455% | 0.152% 3.636 2-9 3.636 3.636 3.636 3.636 3.637 3.636 3.636 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.637 3.637 3.636 3.636 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.637 3.636 3.637 3.637 3.636 3.636 3.637 3.636 3.637 3.637 3.637 3.636 3.637 3.636 3.637 3.637 3.837 3.636 3.638 3.636 3.637 3.636 3.637 3.636 3.637 3.636 3.636 3.636 3.637 3.637 3.637 3.636 3.637 3.636 3.637 3.636 3.637 3.637 3.636 0.455 3.636 3.637 3636 3.637 3.636 3.636 3.636 3.637 3.636 3.636 3.637 3.636 3.636 3.636 3.637 2.879 1061 75 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 10-001 75 75-74 75 74-74 75 74-74-74-74-74-74-74-74 75 9 26 75 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 7-55 75 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 76 74 75 74 75 74 75 32 6|25 74 75 74 75 74 75 74 75 74 5 74 75 74 75 74 75 74 5 74 75 74 75 74 75 1. 3 3 3 3 3. 3 3 3 3 3 3 3 3 3. 333333333332 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 13 2-78 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 233 3. 3. 3. 3 3 3 3 3. 333333333 3. 3 3 3 3. 3. 1. 1-42 75 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 75 74 20 | tur-1 2-1 8 9 0 1 12 13 14 15 16 17 18 10 20 21 22 23 24 25 26 27 28 29 30 31 32 33 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 Yoar 10 12 2.461 % | 2.247% | 2.033% | 1.819% | 1.605% | 1.391 % | 1.177% | 00% | 0749% | 0635% | 0321% | 0.107% 2.564 0.535 2.564 1.605 2.564 1.819 2.564 2.033 2-39 2.564 2.564 0321 2.584 0.749 2.564 0.963 2.564 2.564 1.391 2.564 2.247 2.564 2.461 40 0.107 b. What is Dee's year 2 cost recovery for each asset? Year 2 Cost Recovery Asset Computer equipment Furniture Pickup truck Commercial building Total
