ebook Calculator Print Item Exercise 8-21 (Algorithmic) (10.2) Lucid acquires a 7-year dass asset on May 9, 2017, for $256,400. Eudid does not elect Immediate expanding under 179. He does daim any available additional first-year depreciation. Click here to access the depredation table to use for this problem. If required, round your answers to the nearest dollar. Eudid's cost recovery deduction is 45,786 x for 2017 and 60,176 X for 2016. Why w Under the modified accelerated cost recovery system (MACRS), the cost of an asset is recovered over a predetermined period that generally is shorter than the useful life of the asset or the period that the asset is used to produce income. The MACRS rules were designed to encourage investment, improve productivity, and simplify the pertinent law and its administration. AA Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention For Property Placed in Service after December 31, 1986 MACRS Other Recovery Years First Last Recovery Ye Class Recovery Year Years 3 year 16.67 5-year 10.00 7-year 10 year 5.00 15-year 20 year The official table cont e nt row for each your or operation re In some instance, this will produce a of 1 for the whe t her 250 percentage tal methods: 200 aight-line. lods: 3,5,7, 10 half-year. y percentage tal method: 200 pe he. riods: 3, 5, 7 yea mid-quarter. al straight-line tab n method: straigh eriods: 3, 5, 7, 10 half-year. ax declining-balar n method: 150 pe ine. eriods: 3, 5, 7, 9.5 half-year. on system straight n method: straigh eriods: 5, 10, 12 y half-year. ut-line table for rec straial Example 11 The Big Picture Return to the facts of The Big Picture. If Dr. Payne elects the straight-line method of cost recovery, his total cost recovery deduction is computed as follows. Office furniture and fixtures (570,000 x .0714) (Exhibit 8.5) Computers and peripheral equipment 1567,085X.101 Exhibit 8.5) Dental equipment 15475,000 x 0714 Exhibit 8.5) Total cost recovery deduction bit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention For Property Placed in Service after December 31, 1986 Other Recovery Years Class Recovery Year Years MACRS % First Last Recovery Yea 20.00 2-7 5.00 3-year 16.67 5-year 10.00 7-year 7.14 14.29 10-year 15-year 3.33 20-year 2- 205 .00 The official table contains a separate row for each year. For ease of presentation, certain your In some instances, this will produce a difference of 1 for the last digt when compared with the 10.00 2-15 2.50 Example 11 The Big Picture Return to the facts of The Big Picture. If Dr. Payne elects the straight line method of cost recovery, his total cost recovery deduction is computed as follows. $ 4.990 6.709 Office furniture and fixtures TO 200 x 0714) (Exhibit 8.5) trinheral equipment