Required information [The following information applies to the questions displayed below.] Assume that Ernesto purchased a digital camera on July 10 of year 1 for $3,000. In year 1, 80 percent of his camera usage was for his business and 20 percent was for personal photography activities. This was the only asset he placed in service during year 1. Ignoring any potential $179 expense and bonus depreciation, answer the questions for each of the following alternative scenarios: (Use MACRS Table 1, Table 2) (Leave no answer blank. Enter zero if applicable.) d. What would be Ernesto's depreciation deduction for the camera in year 2 if his year 2 usage was 30 percent business and 70 percent for personal use? Depraciation expense Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 15-Year 20-Year 3-Year 5-Year 7-Year 10-Year Year 1 33.33% 20.00% 1429% 10.00% 5.00% 3.750% Year 2 32.00 24.49 44.45 18.00 9.50 7.219 Year 3 Year 4 Year 5 1481 17.49 19.20 14.40 8.55 6.677 11.52 741 12.49 11.52 7.70 6.177 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 6.55 4.46 5.90 4.522 Year 9 6.56 5.91 4.462 Year 10 4.461 6.55 5.90 Year 11 3.28 5.91 4.462 Year 12 Year 13 5.90 4.461 5.91 4.462 Year 14 Year 15 5.90 4.461 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 Year 19 Year 20 4.461 4.462 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 Perlod 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 8.75 138 Year 6 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 18.00 Year 3 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 S 3.34 TABLE 2e 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% 10.715 Year 2 3400 25.51 Year 3 18.22 Year 4 1224 11.30 13.02 Year 5 9.30 Year 6 7.06 8.85 Year 7 8.86 Year S 5.53 TABLE 2d MACRS Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period siYear 7 Year 5.00% Near I 3.52% Year 2 3800 27.55 22 1348 Year 3 19.68 Year 4 1406 Year 5 1094 1004 Year 6 9.58 8.73 Year 7 Year 8
