Way Corporation disposed of the following tangible personal property assets in the current year. Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) Date Acquired 5/12/16 3/23/17 9/17/18 10/11/19 10/11/20 Date Sold 7/15/20 3/15/20 3/13/20 8/11/20 12/15/20 Convention HY MQ HY MQ HY Original Basis $ 87,500 104,500 46,000 303,800 106,000 *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2020 depreciation deduction (ignore $179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Depreciation deduction $ 86,672 20-Year 3.750% 7.219 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14.81 19.20 17.49 14.40 8.55 Year 4 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 6.677 6.177 5.713 5.285 4.888 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 5.90 Year 11 3.28 5.91 4.461 4.462 4.461 Year 12 5.90 Year 13 5.91 4.462 Year 14 5.90 4.461 4.462 Year 15 5.91 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 1. Year TABLE 2 MACRS Mid-Quarter Couveuties: For properly placed in service during the first quarter Depreciation Rate for Recovery Period S-Year Year 1 35.00% 25.00% Year 2 26.00 Year 3 15.60 13.31 Year 4 11.01 10.93 Years 11.01 Year 6 1.35 8.74 Year 7 5.73 Years 1.09 TABLE 25 MACRS AGA-Quarter Convention: For property placed in serice during the ate quente Depreciation Rate for Recovery Period 5-Year 1-Year Year 1 17.53% Year 2 30.00 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 Year 3.57 Year 7 Years TABLE 2 MACRS Mid-Quarter Convention: For gropery placed in serie during the bird quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.7136 Year 2 34.00 25.51 20.40 18.22 Year 4 12.24 13.02 Years 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Years 5.33 TABLE 2d MACRS-Mid Quarter Conventiou: For property placed is crice during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.5796 Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Years 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 3 7.64 EXHIBIT 10-6 Mid-Quarter Convention Percentage of Full-Year's Depreciation in Year of Disposition Quarter of Disposition Percentage Calculation 1st 12.5% 1.5/12 2nd 37.5 4.5/12 3rd 62.5 7.5/12 4th 87.5 10.5/12 *The calculation is the number of months the taxpayer held or is deemed to have held the asset in the year of disposition divided by 12 months in the year