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 MO HY MQ HY Original Basis $ 95,000 112,00e 52, e9e 311,600 112,080 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto Calculate Way Corporation's 2020 depreciation deduction (ignore 5179 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 correc . Depreciation deduction $ 71,487 Table 1 MACRS Half-Year Convention Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15 Year 20-Year 33.33% 20.00% 14.29% 10.00% 5.00% 3.750% 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 N 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Medi 2347 8. TABLE 2a MACRS Mid-Quarter Convention For property placed in service der the first quarter Depreciation Rate for Recovery Period 5. Year 7.Year Year 1 35.00% 23.00% Year 2 2600 21.43 Year 3 15.60 1531 Year 4 11.01 1093 Year 5 11:01 8.75 Year 6 1.38 8.74 Year 7 8.75 Years 1.09 TABLE 26 MACRS Mid Quarter Convention: For propers placed service during the counter Depreciation Rate for Recovery Period S-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 Year 3 18.00 1676 Year 4 11.97 Year 5 1137 Year 6 426 8.87 Year 7 8.87 Year 8 334 TABLE 2 MACRS MG Quarter Conventions For property placed by sence during the third quarter Depreciation Rate for Recovery Period 5-Year 7. Year Sear! 15.00% 10719 Year 2 34.00 2551 Year 20.40 1622 Year 4 12:24 13.02 Year 5 11.30 Year 6 706 8.85 Year 7 8.86 Years 5.53 TABLE 24 MACRS-MMd Quarter Convention. For property placed worsice during the two Depreciation Rate for Recovery Period S-Year 7.Year Year 1 5.00% Year: 38.00 Year 3 19.68 Year 4 13.58 1405 Years 10.94 10.04 Year 273 Year Years 7:54 7755 22.10 nect Production/bne/accounting/spilker 12e/exhibit 10_6.htm EXHIBIT 10-6 Mid-Quarter Convention Percentage of Full Year's Depreciation in Year of Disposition Quarter of Disposition Ist 2nd 3rd 4th Percentage 12.596 37.5 62.5 87.5 Calculation 1.5/12 4.5/12 7.5/12 10.5/12 *The calculation is the number of months the taxpower held or is deemed to have held the asset in the year of disposition divided by 12 months in the year