Required Information Problem 10-54 (LO 10-2, LO 10-3) 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 Teble 1, Table2.and Table 5) Date Placed in Service 25-0ct 03-Feb 17-Har 22-Apr Asset Basis Machinery Computer equipment Used delivery tr Furniture Total S 96,00 5 36,eee 49,eee $ 176 , eee 357,ee0 uck The delivery truck is not a luxury automoble. In addition to these assets, Convers Installed new flooring (qualified Improvement property) to its office bullding on May 12 at a cost of $560,000 Problem 10-54 Part a a. What Is the allowable MACRS depreclation on Convers's property in the current year assuming Convers does not elect 6179 expense and elects out of bonus depreciat on? (Round your Intermediate calculations to the nearest whole dollar amount.) Problem 10-54 Part b b. What is the allowable MACRS depreciation on Convers's property In the current year assuming Convers does not elect out of bonus depreciation (but does not take $179 expense) TABLE 2b MACRS Mid-Quarter Convention: For property ploced in service during the second quarter Depreciation Rate for Recovery Period 7 -Year 17.85% 23.47 16.76 11.97 8.87 887 8.87 3.34 18.00 11.37 11.37 4 26 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Rate for Recovery Period 10.71% 25.51 18.22 13.02 9.30 885 8.86 5.53 1224 1.30 7.06 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 10 12 2033% 2.564 0.535 0 963% 2564 605 0 749% 2564 819 0 535% 2564 033 0321% 2564 2247 0.107% 2.564 2461 2461% | 2.247% 2564 0321 1.819% 2.564 0.749 1 605% 2564 963 1.391% 2.564 1,177 1.177% 2564 .391 2-39 2564 0.107 TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 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 33.33% 44.45 14.8 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 3.750% 7.219 6.677 3 4 7.41 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4 461 6 7 10 12 13 14 ABLE 2a TABLE 2d MACRS Mid-Quarter Convention: For property placed in service during the first quarter MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreclation Rate for Recovery Period Depreciation Rate for Recovery Period 7-Year 3.57% 21.43 15.31 0.93 875 874 8.75 1.09 38.00 22.80 13.68 10.94 9.58 27.55 19.68 14.06 10.04 8.73 8.73 7.64 11.01 11.01 1.38
