TABLE 7.1 Recovery Periods for Tangible Business Assets MACRS Recovery Period Assets Included 3 years Small manufacturing tools, racehorses and breeding hogs, special handling devices used in food manufacturing. 5 years Cars, trucks, buses, helicopters, computers, typewriters, duplicating equipment, breeding and dairy cattle, cargo containers, new farming machinery and equipment. 7 years Office furniture and fixtures, railroad cars and locomotives, most machinery and equipment. 10 years Single-purpose agricultural and horticultural structures; assets used in petroleum refining, vessels, barges, and other water transportation equipment; fruit- or nut-bearing trees and vines. 15 years Certain building improvements; land improvements such as fencing, roads, sidewalks, bridges, irrigation systems, and landscaping; telephone distribution plants; pipelines; billboards; and service station buildings. 20 years Certain farm buildings, municipal sewers. 25 years Commercial water utility property. 27.5 years Residential rental real property (duplexes and apartments). 39 years Nonresidential real property (office buildings, factories, and warehouses). 50 years Railroad grading or tunnel bore.TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Recovery Period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Depreciation Rate 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231Firm J purchased a depreciable business asset for $67,000. Assuming the firm uses the half-year convention, compute its first-year MACRS depreciation if the asset is: Use Table 7-1 and Table 7-2. Required: a. A land irrigation system. b. Duplicating equipment. c. An oceangoing barge. d. Small manufacturing tools. Note: For all requirements, round your answers to the nearest whole dollar amount. MACRS Depreciation a. A land irrigation system $ 3,350 b. Duplicating equipment c. An oceangoing barge EA 6,700 d. Small manufacturing tools $ 22,331