Convers Corporation (June 30 year-end) acquired the following assets during the

Question

Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem): Placed in Original Service Date November 17 February 22 February 17 May 20 Asset Basis Machinery Computer equipment Used delivery truck* Furniture Total $ 101,000 16,100 28,000 232,000 $ 377,100 The delivery truck is not a luxury automobile What is the allowable MACRS depreciation on Convers's property in the current year? (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) MACRS depreciation

Explanation / Answer

Asset Placed in Service Date Quarter Original Basis Rate Depreciation Machinery (7 Year) Nov-17 2 $101,000 17.85% $18,029 Computer Equipment(5 Year) Feb-22 3 $16,100 15% $2,415 Used Delivery Truck (5 Year) Feb-17 3 $28,000 15% $4,200 Furniture (7 Year) May-28 4 $232,000 3.57% $8,282 Total $377,100 $32,926 MACRS Depreciation is $32926

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