At the beginning of the year, Poplock began a calendar-year dog boarding busines

Question

At the beginning of the year, Poplock began a calendar-year dog boarding business called Griff’s Palace. Poplock bought and placed in service the following assets during the year:

Asset                                 Date Acquired   Cost Basis

Computer equipment      3/23                     $ 6,000

Dog grooming furniture  5/12                           $ 7,000

Pickup truck                      9/17                     $ 10,000

Commercial building       10/11                       $260,000

Land (one acre)                10/11                     $ 80,000

Assuming Poplock does not elect §179 expensing or bonus depreciation, what is Poplock’s year 1 depreciation expense for each asset?

Explanation / Answer

Asset Purchase Date Quarter Recovery period Original Basis Rate Depreciation Computer equipment 3/23 1st 5 years $6,000 20.00% $1,200 Dog grooming furniture 5/12 2nd 7 years $7,000 14.29% $1,000 Pickup truck 9/17 3rd 5 years $10,000 20.00% $2,000 Commercial building 10/11 4th 39 years $260,000 0.535% $1,391

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