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Required information Skip to question [The following information applies to the questions displayed below.] Evergreen Corporation (calendar year-end) acquired the following assets during the current

Required information Skip to question [The following information applies to the questions displayed below.] Evergreen Corporation (calendar year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Asset Date Placed in Service Original Basis Machinery October 25 $ 70,000 Computer equipment February 3 10,000 Used delivery truck* August 17 23,000 Furniture April 22 150,000 *The delivery truck is not a luxury automobile. b. What is the allowable depreciation on Evergreens property in the current year if Evergreen does not elect out of bonus depreciation?

Depreciation Rate for Recovery Period
3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
Year 1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750%
Year 2 44.45 32.00 24.49 18.00 9.50 7.219
Year 3 14.81 19.20 17.49 14.40 8.55 6.677
Year 4 7.41 11.52 12.49 11.52 7.70 6.177
Year 5 11.52 8.93 9.22 6.93 5.713
Year 6 5.76 8.92 7.37 6.23 5.285
Year 7 8.93 6.55 5.90 4.888
Year 8 4.46 6.55 5.90 4.522
Year 9 6.56 5.91 4.462
Year 10 6.55 5.90 4.461
Year 11 3.28 5.91 4.462
Year 12 5.90 4.461
Year 13 5.91 4.462
Year 14 5.90 4.461
Year 15 5.91 4.462
Year 16 2.95 4.461
Year 17 4.462
Year 18 4.461
Year 19 4.462
Year 20 4.461
Year 21 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 2b 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 8.87
Year 6 4.26 8.87
Year 7 8.87
Year 8 3.34

TABLE 2c 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
Year 7 8.86
Year 8 5.53

TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter

Depreciation Rate for Recovery Period
5-Year 7-Year
Year 1 5.00% 3.57%
Year 2 38.00 27.55
Year 3 22.80 19.68
Year 4 13.68 14.06
Year 5 10.94 10.04
Year 6 9.58 8.73
Year 7 8.73
Year 8 7.64

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