The first document named MODULE 1 is the explanation of the assignment and the other Answer Table document is how it is supposed to be answered.

\fBusiness Taxation: SPRING16-C-8-ACT415-2 Prev Module 1: Entities, Periods and Methods Module 1: Critical Thinking Submissions CRITICAL THINKING ASSIGNMENT (70 Points) Important! Read First Submit Assignment Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Assignment Choice #1: Cost Recovery Methods A real estate professional is preparing a depreciation schedule to complete his tax return. He owns a residential property that he rents. The list of depreciable assets are shown below. Initial Basis/Cost Acquisition Date $125,000 2/1/2000 $5,000 1/15/2013 $200 6/15/2012 $50 7/1/2013 Carpet $1,000 8/2/2010 Fences $2,000 2/1/2000 Asset Residential Real Estate Asset Furniture Refrigerator Microwave Requirements: Analyze the information above. Modify the attached spreadsheet to address each of the numbered requirements. In the appropriate areas: 1. List the Asset Class. 2. Calculate the depreciation amount for the current tax year and list the table used. 3. Cite the information source from which you answered #1 and #2 (IRS publication, textbook, website, etc.). Clearly identify the requirement being addressed. Show all calculations within the cells of the spreadsheet. This means that you must use formulas and links so that your thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions is permitted. Review the grading rubric, which can be accessed from the Course Information page, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment. Note: If IRS Publication 527 is used, apply the MACRS GDS system instead of the MACRS ADS system