Your company just purchased office furniture(asset class00.11) for $107,000 and placed it in service on August13, 2007. The cost basis for the furniture is $107,000, and it will be depreciated with the GDS usinghalf-year convention. The expected salvage(market) value of the furniture is $4,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.

Your company just purchased office furniture (asset class 00.11) for $107,000 and placed it in service on August 13, 2007. The cost basis for the furniture is $107,000, and it will be depreciated with the GDS using half-year convention. The expected salvage (market) value of the furniture is $4,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (*) The recovery period for the furniture is years. (Round to the nearest whole number.) Determine the depreciation deductions over the recovery period. (Round to the nearest dollar) Year The depreciation deduction, $ 2007 2008 2009 2010 00000000 2011 2012 2013 2014i X More Info - MACRS Class Lives and Recovery Periods Recovery Periods Asset Class Descriptions of Assets Class Life GDS ADS 00.11 Office furniture and equipment 10 10 00.12 Information systems, including computers 00.22 Automobiles, taxis 00.23 Buses 00.241 Light general purpose trucks 00.242 Heavy general purpose trucks 00.26 Tractor units for use over the road 01.1 Agriculture 10.0 Mining 13.2 Production of petroleum and natural gas 13.3 Petroleum refining 15.0 Construction 22.3 Manufacture of carpets 24.4 Manufacture of wood products and furniture 28.0 Manufacture of chemicals and allied products 9.5 9.5 30.1 Manufacture of rubber products 32.2 Manufacture of cement 20 34.0 Manufacture of fabricated metal products 12 12 36.0 Manufacture of electronic components, products, and systems 6 5 6 37.11 Manufacture of motor vehicles 12 7 12 37.2 Manufacture of aerospace products 10 7 10 48.12 Telephone central office equipment 18 10 18 49.13 Electric utility steam production plant 28 20 28 49.21 Gas utility distribution facilities 35 20 35 79.0 Recreation 10 7 10 Print Donei More Info GDS Recovery Rates (r ) for the Six Personal Property Classes Recovery Period (and Property Class Year 3-year 5-year 7-year 10-year 15-year 20-year 0.3333 0.2000 0. 1429 0. 1000 0.0500 0.0375 0.4445 0.3200 0.2449 0.1800 0.0950 0.0722 0. 1481 0. 1920 0.1749 0. 1440 0.0855 0.0668 0.0741 0. 1152 0.1249 0. 1152 0.0770 0.0618 0.1152 0.0893 0.0922 0.0693 0.0571 0.0576 0.0892 0.0737 0.0623 0.0528 0.0893 0.0655 0.0590 0.0489 0.0446 0.0655 0.0590 0.0452 GENESOOODAWN 0.0656 0.0591 0.0447 0.0655 0.0590 0.0447 0.0328 0.0591 0.0446 0.0590 0.0446 0.0591 0.0446 0.0590 0.0446 0.0591 0.0446 16 0.0295 0.0446 17 0.0446 18 0.0446 19 0.0446 20 0.0446 21 0.0223 These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000 "These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places. Print Done