System 200% or 150% Declining Balance Switching to Straight-Line*

Half-Year Convention

Recovery Year

1 2 3 4 5 6 7 8 9

 10 11 12 13 14 15 16 17 18 19 20 21 

3-Year

33.33 44.45 14.81

7.41

5-Year

20.00 32.00 19.20 11.52 11.52

5.76

7-Year

14.29 24.49 17.49 12.49

8.93 8.92 8.93 4.46

10-Year

10.00 18.00 14.40 11.52

9.22 7.37 6.55 6.55 6.56 6.55 3.28

15-Year

5.00 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95

20-Year

3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231

Betsy acquired a new network system on June 5, 2016 (5-year class property), for $54,000. She expects taxable income from the business will always be about $140,000 without regard to the 179 election. Betsy will elect 179 expensing. She also acquired 7-year property in July 2016 for $280,000. Determine Betsys maximum cost recovery deduction with respect to her purchases in 2016: