Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions ($179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Placed In Service Basis March 20 $1,191,000 Asset Office furniture (used) a. If Woolard elects $50,000 of $179, what is Woolard's total depreciation deduction for the year? Woolard's total depreciation b. If Woolard elects the maximum amount of $179 for the year, what is the amount of deductible $179 expense for the year? What is the total depreciation that Woolard may deduct in 2019? What is Woolard's $179 carryforward amount to next year, if any? Deductible $179 expense Total depreciation deduction $179 carryforward c. Woolard is concerned about future limitations on its $179 expense. How much $179 expense should Woolard expense this year if it wants to maximize its depreciation this year and avoid any carryover to future years? $179 expense Table 1 MACRS Half-Year Convention 15-Year 20-Year Year 1 3.750% 7.219 Year 2 Year 3 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year | 10-Year | 33.33% 20.00% 14.29% 10.00% 44.45 32.00 24.49 18.00 14.81 19.20 17.49 14.40 7.41 11.52 12.49 11.52 11.52 8.93 9.22 5.76 8.92 7.37 8.93 6.55 5.00% 9.50 8.55 7.70 6.93 6.677 6.177 Year 4 Year 5 5.713 6.23 5.285 5.90 4.888 Year 6 Year 7 Year 8 Year 9 Year 10 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 4.461 4.462 Year 11 3.28 4.461 Year 12 Year 13 5.90 5.91 5.90 5.91 5.90 5.91 4.462 4.461 Year 14 Year 15 Year 16 4.462 2.95 4.461 Year 17 4.462 4.461 4.462 Year 18 Year 19 Year 20 Year 21 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 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 18.22 | Year 3 Year 4 Year 5 Year 6 20.40 12.24 11.30 7.06 13.02 9.30 8.85 8.86 5.53 Year 7 Year 8 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter 5.00% Depreciation Rate for Recovery Period 5-Year 17-Year Year 11 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 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years Month Property Placed in Service Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month | 10 Month 11 Month 12 | 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.667% 1.364% 1.061% 0.758% 0.455% 0.152% Year 11 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 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 10 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 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 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3651 3.637 Year 3.637 3.637 3.637 14 3.637 3.637 3.637 3636 3.6363.6363.636 3.636 3.6363.636 Year 15 3.636 3.636 3.636 3.636 3.636 3.6363.637 3.637 3.6373.6373.637 3.637 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 16 36363.636 3.636 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 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 18 Year 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 19 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 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 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 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 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 24 Year 3.636 3.636 25 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 26 3.636 3.636 3.636 3.636 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 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 Year 29 0.152 0.455 0.758 1.061 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993) Month 3 2.513% 3.175 3.175 3.174 Month 9 0.926% 3.175 3.175 3.174 3.175 L Month 2 2.778% 3.175 3.174 3.175 3.174 3.175 3.174 L Month 11 0.397% 3.175 3.175 3.174 L Month 4 2.249% 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Month 12 0.132% 3.175 L 3.175 3.175 | Month 8 1.190% 3.175 3.175 3.175 3.174 3.175 L Month 10 0.661% 3.175 L 3.175 3.175 3.174 3.175 3.175 3.175 3.174 3.175 | 3.174 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.175 3.175 3.174 3.174 3.174 3.175 3.174 3.174 3.175 3.175 Month Property Placed in Service Month 5 Month 6 Month 7 1.984% 1.720% 1.455% 3.175 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 13.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Month 1 Year 1 3.042% Year 2-7 | 3.175 Year 8 3.175 Year 9 3.174 Year 10 3.175 Year 11 3.174 Year 12 3.175 Year 13 3.174 Year 14 3.175 Year 15 3.174 Year 16 3.175 Year 17 3.174 Year 18 3.175 Year 19 3.174 Year 20 3.175 Year 21 3.174 Year 22 3.175 Year 23 3.174 Year 24 3.175 Year 25 3.174 Year 26 3.175 3.174 3.175 3.174 1 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 1 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 1 3.175 3.175 1 3.175 3.175 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 3.174 3.174 3.174 3.174 3.175 3.175 3.174 3.174 3.175 3.175 3.175 3.175 3.174 3.175 3.175 3.174 3.175 3.174 1.720 3.174 3.175 3.174 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 3.175 3.174 3.175 3.174 2.778 3.174 3.174 3.175 3.174 3.175 3.174 3.175 0.132 3.174 3.175 3.174 3.175 3.174 3.175 1.190 3.174 3.175 3.174 3.175 3.174 0.926 3.174 3.175 3.042 3.175 1.984 3.174 2.249 3.175 2.513 3.175 3.174 3.175 0.661 3.175 3.174 0.397 1 3.175 3.174 1.455 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Year 1 Year 239 Year 40 Month 1 2.461% 2.564 0.107 Month 2 2.247% 2.564 0 .321 Month 3 2.033% 2.564 0.535 Month 4 1.819% 2.564 0.749 Month Property Placed in Service Month 5 | Month 6 Month 7 1.605% 1.391% 1.177% 2.564 2.564 2.564 0 .963 1.177 1.391 Month 8 0.963% 2.564 1.605 Month 9 0.749% 2.564 1.819 Month 10 0.535% 2.564 2.033 Month 11 0.321% 2.564 2.247 Month 12 0.107% 2.564 2.461