Way Corporation disposed of the following tangible personal property assets in the current year. Date Original Asset Acquired Date Sold Convention Basis Furniture (7-year) 5/12/17 7/15/21 HY $ 55,000 Machinery (7-year) 3/23/18 3/15/21 72,000 Delivery truck* (5-year) 9/17/19 3/13/21 HY 20,000 Machinery (7-year) 10/11/20 8/11/21 270,000 Computer (5-year) 10/11/21 12/15/21 HY 80,000 MQ *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 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 $ 60,703 Table 1 MACRS Half-Year Convention 20-Year Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 Year 1 3.750% Year 2 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 Year 4 Year 5 6.177 5.713 11.52 9.22 6.93 8.93 8.92 Year 6 5.76 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 6.55 5.90 4.461 4.462 3.28 5.91 Year 10 Year 11 Year 12 Year 13 5.90 4.461 5.91 4.462 Year 14 5.90 4.461 5.91 4.462 Year 15 Year 16 2.95 4.461 4.462 4.461 Year 17 Year 18 Year 19 Year 20 Year 21 4.462 4.461 2.231 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 Years 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 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 TABLE 2 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 Years 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 5.53 TABLE 24 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 Years 10.94 10.04 Year 6 958 8.73 Year 7 8.73 Year 8 764 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.S/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 taxpaver held or is deemed to have held the asset in the year of disposition divided by 12 months in the year