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 Original Acquired Sold Sold Convention Convention Basis 5/12/15 7/15/19 HY $ 105,000 3/23/16 3/15/19 122,000 9/17/17 3/13/19 60,000 10/11/18 8/11/19 322,000 10/11/19 12/15/19 120,000 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2019 depreciation deduction (ignore 5179 expense and bonus depreciation for this problem). (Use MACRS Table 1. Table 2. and Exhibit 106) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deduction Seven T wile (0 Table 1 MACRS Half-Year Convention L | Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 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 14.81 19.20 1 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9 .22 6.93 5.76 8.92 7.37 6.23 8.93 6 .55 5.90 4.46 6.55 5.90 1 6 .56 5.91 T . 6.55 5.90 3.28 5.90 5.91 5.90 5.91 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 LLLL 4.462 4.461 Year 20 4.462 4.461 2.231 Year 21 O Ri Se 2 T 12- w ] e e TABLE 2a MACRS Mid-Quarter Convention: For property placed in seri Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 3 5.00% 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 30.00 Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 2 5.00% 17.85% Year 2 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 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service durin Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10,71% Yen Year 4 Year 5 Year 6 11.37 11.37 11.97 8.87 4.26 8.87 Year 7 Year 8 8.87 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service 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 L 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 20 MACRS-Mid Quarter Convention: For property placed in service dur! Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5 .00% 3.57% Year 2 38.00 27.55 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 Year 3 EXHIBIT 10-6 Mid-Quarter Convention Percentage of Full-Year's Depreciation in Year of Disposition Quarter of Disposition Percentage Calculation 12.5% 1.5/12 2nd 37.5 4.5/12 625 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