1. Santas Workshop, Inc. acquired and placed in service the following assets during the year:

Asset	Date Acquired	Cost Basis
Computer equipment	2/17	$10,000
Sleigh (depreciated as a commercial vehicle > 6000lbs.)	5/12	$17,000
Santas Tesla (Be sure to consider special rules for luxury vehicles.)	6/30	$100,000
Workshop building	11/1	$270,000

Assuming SW, Inc. does not elect 179 expensing and elects not to use bonus depreciation, answer the following questions:

1. What is SW Inc.s year 1 cost recovery for each asset?
2. What is SW Inc.s year 2 cost recovery for each asset?
3. What is SW Inc.s year 3 cost recovery for each asset if they sell all of these assets on 1/23 of year 3?
4. What is SW Inc.s tax basis gain or loss if they sell the computer equipment on 1/23 of year 3 for $9,500?