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 Date Acquired Sold Convention 5/12/157 /15/19 HY 3/23/16 3/15/19 MQ 9/17/17 3/13/19 HY 10/11/18 8/11/19 MQ 10/11/19 12/15/19 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 2019 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.) Depreciation deduction Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 33.33% 20.00% 14.29% 10.00% Year 1 Year 2 Year 3 44.45 32.00 24.49 18.00 20-Year 3.750% 7.219 6.677 6.177 14.81 17.49 12.49 Year 4 19.20 11.52 11.52 7.41 15-Year 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 14.40 11.52 9.22 Year 5 8.93 5.713 Year 6 5.76 8.92 7.37 5.285 8.93 6.55 4.888 Year 7 Year 8 4.46 6.55 4.522 Year 9 6.56 5.91 4.462 Year 10 6.55 4.461 5.90 5.91 Year 11 3.28 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 4.461 Year 15 5.90 5.91 2.95 4.462 4.461 Year 16 Year 17 4.462 Year 18 4.461 Year 19 4.462 4.461 Year 20 Year 21 2.231 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. TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 L 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 T 8.73 Year 7 8.73 Year 8 7.64