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Scenario $1$: Change in Useful Life

Equipment purchased for $$80,000$

Placed in service on April $1$st$,2021$

Original estimated useful life: $7$ years

Depreciation Method: MACRS

As of the beginning of $2024,$ the estimated remaining useful life is revised to $5$ years.

Calculate:

Depreciation deductions taken in $2021,2022,$ and $2023.$

Revised depreciation deduction for $2024$ and subsequent years.

Scenario $2$: Partial Year Depreciation & Conventions

Building purchased for $$550,000($residential rental property$)$

Placed in service on September $5$th$,2023$

Depreciation Method: MACRS $($Residential Rental Property$)$

Calculate:

The depreciation deduction for $2023,$ considering the appropriate convention.

The depreciation deduction for $2024($a full year$).$