Sherry Hopson owns a retail family cothing store. Her store is located at 4321 Circle Drive, Houston, TX 77001. Her employer identification number is 95-1234321 and her Social Security number is 123-45-6789. The income and expenses for the year are: Gross sales $350,000 Returns and allowances (4,500) Net sales $345,500 Expenses: $82,500 Add: Purchases 210,000 Cost of goods available for sale 292,500 Less: ending inventory (at cost) (71,000) Rent $221,500 Insurance 9,000 Legal and accounting fees 1,500 Payroll 38,000 Payroll Taxes 2,600 Utilities 1,850 Office Supplies 750 Advertising 2,100 On June 1 of this year, Sherry purchased the following new assets for the store: Depreciable Basis Recovery Period Heavy duty truck $31,000 5 years Desk and file cabinets 2,000 7 years Computer 6,000 5 years The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. REQUIRED: Assuming that all other assets are fully depreciated and Sherry does not make the election to expense or take bonus depreciation, complete her Form 4562. Make up any additional information you need to complete the schedule. I HAVE DONE SOME OF THIS FORM BUT NOT SURE IF IT IS RIGHT. YOU CAN USE THIS FORM I HAVE ATTACHED AND MAKE CORRECTIONS AS NEEDED. THANKS

Form 4562 Depreciation and Amortization Department of the Treasury Internal Revenue Service (99) OMB No. 1545-0172 2011 (Including Information on Listed Property) See separate instructions. Attach Attachment Sequence No. 179 to your tax return. Name(s) shown on return Identifying number Business or activity to which this form relates Sherry Hopso New assets for the store Part I 1 2 3 4 5 951234321 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . Total cost of section 179 property placed in service (see instructions) . . . . . . Threshold cost of section 179 property before reduction in limitation (see instructions) . Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If separately, see instructions . . . . . . . . . . . . . . . . . . . . 6 (a) Description of property (b) Cost (business use only) Heavy Duty Truck ... ... ... ... married ... .. .. .. .. filing .. 250000 5 500000 800000 0 (c) Elected cost 31000 31000 7 Listed property. Enter the amount from line 29 . . . . . . . . . 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 ...... 9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . 10 Carryover of disallowed deduction from line 13 of your 2010 Form 4562 . . . . . . . . . . . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 . . . . . 13 13 Carryover of disallowed deduction to 2012. Add lines 9 and 10, less line 12 Note: Do not use Part II or Part III below for listed property. Instead, use Part V. Part II 1 2 3 4 8 9 10 11 12 31000 31000 500000 31000 0 Special Depreciation Allowance and Other Depreciation (Do not include listed property.) (See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) . . . . . . . . . . . . . . . . . . . . . . 15 Property subject to section 168(f)(1) election . 16 Other depreciation (including ACRS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 16 8000 Part III MACRS Depreciation (Do not include listed property.) (See instructions.) Section A 17 17 MACRS deductions for assets placed in service in tax years beginning before 2011 . . . . . . . 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . Section BAssets Placed in Service During 2011 Tax Year Using the General Depreciation System (a) Classification of property 19a b c d e f g h i 20a b c (b) Month and year placed in service (c) Basis for depreciation (business/investment use onlysee instructions) (d) Recovery period (e) Convention (f) Method (g) Depreciation deduction 3-year property 5-year property 5 years HY 200DB 37000 7-year property 2000 7 years HY 200DB 10-year property 15-year property 20-year property 25-year property 25 yrs. S/L Residential rental 27.5 yrs. MM S/L property 27.5 yrs. MM S/L Nonresidential real 39 yrs. MM S/L property MM S/L Section CAssets Placed in Service During 2011 Tax Year Using the Alternative Depreciation System S/L Class life 12 yrs. S/L 12-year 40 yrs. MM S/L 40-year 7400 286 Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . . 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporationssee instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs ....... For Paperwork Reduction Act Notice, see separate instructions. . . . . . 21 22 7686 23 Cat. No. 12906N Form 4562 (2011) Page 2 Listed Property (Include automobiles, certain other vehicles, certain computers, and property used for entertainment, recreation, or amusement.) Form 4562 (2011) Part V Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section ADepreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use claimed? 24b If \"Yes,\" is the evidence written? Yes No Yes (c) (a) (b) Business/ (d) Type of property (list Date placed investment use Cost or other basis vehicles first) in service percentage (e) Basis for depreciation (business/investment use only) (f) Recovery period (g) Method/ Convention (h) Depreciation deduction No (i) Elected section 179 cost 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) . 25 26 Property used more than 50% in a qualified business use: % % % 27 Property used 50% or less in a qualified business use: S/L - % S/L - % S/L - % 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1 . 28 29 Add amounts in column (i), line 26. Enter here and on line 7, page 1 . . . . . . . . . . . . 29 Section BInformation on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other \"more than 5% owner,\" or related person. If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles. (a) Vehicle 1 30 Total business/investment miles driven during (b) Vehicle 2 (c) Vehicle 3 (d) Vehicle 4 (e) Vehicle 5 (f) Vehicle 6 the year (do not include commuting miles) . 31 Total commuting miles driven during the year 32 Total other personal (noncommuting) miles driven . . . . . . . . . . . . 33 Total miles driven during the year. Add lines 30 through 32 . . . . . . . . . 34 Was the vehicle available for personal use during off-duty hours? . . . . . . Yes No Yes No Yes No Yes No Yes No Yes No . 35 Was the vehicle used primarily by a more than 5% owner or related person? . . . 36 Is another vehicle available for personal use? Section CQuestions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). No 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by Yes your employees? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners . . . . 39 Do you treat all use of vehicles by employees as personal use? ................ 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? . . . . . . . . . . . . . . . . . . . 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) . . . Note: If your answer to 37, 38, 39, 40, or 41 is \"Yes,\" do not complete Section B for the covered vehicles. Part VI Amortization (a) Description of costs (b) Date amortization begins (c) Amortizable amount (e) Amortization period or percentage (d) Code section (f) Amortization for this year 42 Amortization of costs that begins during your 2011 tax year (see instructions): 43 Amortization of costs that began before your 2011 tax year . . . . . . 44 Total. Add amounts in column (f). See the instructions for where to report . . . . . . . . . . . . . . . 43 44 Form 4562 (2011)