Question
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;
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 |
|
Asset #2 |
|
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 |
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