Turner Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during

2019:

	Asset #1: 7-year property; $960,000 cost; placed into service on January 20.
	Asset #2: 5-year property; $440,000 cost; placed into service on August 1.

a. What are Turner's depreciation deductions for 2019 and 2020 if this is the only property it places into service in those years and Turner does not elect Sec. 179 expensing and elects out of bonus depreciation for the machine? Calculate

Turner's depreciation deductions for 2019.

(Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.)

	2019 Depreciation
Asset #1	$137,184
Asset #2	$88,000
Total depreciation	$225,184

Calculate Turner's depreciation deductions for 2020.

(Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.)

	2020 Depreciation
Asset #1	$235,104
Asset #2	$140,800
Total depreciation	$375,904

b. What are Turner's depreciation deductions for 2019 and 2020 if this is the only property it places into service in those years and Turner

elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation? (Assume that Turner takes the Sec. 179 deduction on Asset #1 first. Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar. Complete all input fields. Enter a "0" no depreciation is taken.)Begin by determining

Turner's depreciation deduction for 2019 if it elects Sec. 179 expensing and does not elect out of bonus depreciation for the assets.

	Asset #1	Asset #2	Total 2019
Sec. 179 expense
Bonus depreciation
MACRS depreciation
Total depreciation

Reference

General Depreciation

System-MACRS

Personal Property Placed in Service After 12/31/86

Applicable Convention: Half-Year

Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

Recovery period and Depreciation Rates

Recovery Year	3-Year	5-Year	7-Year	10-Year	15-Year	20-Year
Year 1	33.33	20.00	14.29	10.00	5.00	3.750
Year 2	44.45	32.00	24.49	18.00	9.50	7.219
Year 3	14.81	19.20	17.49	14.40	8.55	6.677
Year 4	7.41	11.52	12.49	11.52	7.70	6.177
Year 5		11.52	8.93	9.22	6.93	5.713
Year 6		5.76	8.92	7.37	6.23	5.285
Year 7			8.93	6.55	5.90	4.888
Year 8			4.46	6.55	5.90	4.522
Year 9				6.56	5.91	4.462
Year 10				6.55	5.90	4.461
Year 11				3.28	5.91	4.462
Year 12					5.90	4.461
Year 13					5.91	4.462
Year 14					5.90	4.461
Year 15					5.91	4.462
Year 16					2.95	4.461
Year 17						4.462
Year 18						4.461
Year 19						4.462
Year 20						4.461
Year 21						2.231

What are Turner's depreciation deductions for 2019 and 2020 in each of the following situations if this is the only property it places into service in those years?

a.	Turner does not elect Sec. 179 expensing and elects out of bonus depreciation for the machine.
b.	Turner elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation.
c.	Turner does not elect Sec. 179 expensing and does not elect out of bonus depreciation.