Way Corporation disposed of the following tangible personal property assets in the current year Date Acquired Sold Convention Basis 5/12/2014 7/15/2018 HY 90,00 3/23/2015 3/15/2018 MQ 107,800 Original Date Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) 48,000 9/17/2016 3/13/2018 HY 10/11/2017 8/11/2018 10/11/201812/15/2018 HY MQ306,400 108,000 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate way Corporation's 2018 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.) S 88342 Productionibnelaccouriting/spilker_10e/ch 10 table1 htm Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year7-Year 10-Year 15-Year 20-Year 33.33% 20.00%| 14.29% | 10.00%| 5.00%| 3.750% 44.45 14.81 Year 1 Year 2 Year 3 32.00 19.20 11.52 11.52 5.76 7.219 24.49 17.49 12.49 8.93 8.92 8.93 4.46 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 6.677 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 7.41 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 35.00% 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.60 11.01 11.01 1.38 in service during the second quarter TABLE 2b MACRS Mid-Quarter Convention: For property placed Depreciation Rate for Recovery Period 5-Year 25.00% 30.00 7-Year 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year 4 11.37 Year 511.37 4.26 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 15.00% 34.00 7-Year 10.71% 25.51 18.22 13.02 Year I Year 2 Vear 320.40 Year 4 Year 5 Year 6 Year 7 12.24 11.30 7.06 8.85 8.86 5.53 Year 8 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year 7 Year 1 Year 2 Year 3 5.00% 3.57% 27.55 22.80 13.68 10.94 9.58 19.68 14.06 10.04 8.73 8.73 7.64 Year 6 Year 7 Year 8
