Sarah has decided to expand and remodel her physical therapy facilities and so she has sold the old building and disposed of several pieces of equipment and acquired a new building and replacement equipment this year. She would like your help with the calculation of depreciation on the business assets and the tax treatment of the gain or loss on disposal of the old equipment.

In July of 2018 Sarah sold the following assets which she originally purchased in March of 2007:

1 Treatment table @ $2,599, sold for $400

2 mobile treatment cabinets @ $645 each, sold for $100 each

1 Active/Passive trainer @ $1,785, sold for $400

Building in which practice is housed @ $142,160, sold for $275,000

In January of 2017 Sarah bought a traction table for $7,500. Although she had only owned it a short time she wanted to upgrade to a more sophisticated traction table for her new office so she sold it in July of 2018 for $4,000.

In July 2018 Sarah bought a new building for the practice for $250,000 and purchased all of the following additional new assets (all of the PT equipment is 7-year property):

1 Multi-stack gym @ $8,900

1 Treadmill @ $5,399

3 treatment tables @ $3,075 each

4 mobile treatment cabinets @ $875 each

1 Active Trac Traction Table @ $20,000

1 Active/Passive Trainer @ $2,755

Laptop computers for herself and each of her staff members along with a shared printer for $4,000

1. Help me identify the correct asset class and useful life (depreciation period) for each of the depreciable assets listed above. Also discuss the options that Sara has available in terms of accelerating her depreciation deduction beyond regular MACRS depreciation.

1. Please help identify the accumulated depreciation through 2017 for the older assets, 2018 depreciation expense for the newly acquired assets, and the gain or loss on the assets that were sold (you may include basis and sales proceeds columns for these assets as well). How do I do this?