1. What is the tax depreciation according to MACRS for year 1 and 2 for each item and in total (assuming they did not take 179 election) for each of the following Company Scenarios?

Company A

Item	Cost Basis	Year 1 Depreciation	Year 2 Deprecation
Aluminum Press (7 year)- (May)	$55,000
Group of Computers for the front Office (3 yr.) - (November)	$8,000
Forklift (5 yr.) (December)	$450,000
Total Deprecation Each Year

Company B

Item	Cost Basis	Year 1 Depreciation	Year 2 Deprecation
Vehicles - (May)	$120,000
Group of Computers for the front Office - (3 yr) (June)	$18,000
Sewing Machine (December)	$25,000
Total Deprecation Each Year

1. Dividends Received Deduction. During the year, CCS received a $6,000 dividend from IBM. CCS owns less than 1% of the IBM stock outstanding. What is CCSs DRD associated with the dividend? CCSs income is $10,000.

What if the % ownership was 50% of IBM stock?