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Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate

Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporations 2020 depreciation expense (ignore 179 expense and bonus depreciation for this problem).

Asset

Date acquired

Date sold

Convention

Original

Basis

Furniture (7 year)

5/12/16

7/15/20

HY

$50,000

Machinery (7 year)

3/23/17

3/15/20

MQ

$72,000

Delivery truck* (5 year)

9/17/18

3/13/20

HY

$20,000

Machinery (7 year)

10/11/19

8/11/20

MQ

$260,000

Computer (5 year)

10/11/20

12/15/20

HY

$80,000

*Used 100 percent for business.

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