Question

Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired Date Sold Original Convention HY MO HY MO HY Basis Asset Furniture (7-year) Machinery (7-year) Delivery truck (s-year) Machinery (7-year) Computer (5-year) 5/12/2814 7/15/2818 3/23/2815 3/15/2818 9/17/2816 3/13/2818 18/11/2817 8/11/2818 18/11/2818 12/15/2818 112,588 129,588 66.888 329,888 126,808 "Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2018 depreciation deduction (ignore S179 expense and bonus depreciation for this problem). (Use MACRS Table 1 Table 2, and Exhibit 10-6.) (Round your Intermedlete doller calculetlons and final answer to the nearest whole doller amount.)

Answer 1

Rate as per MACRS the year (cn Expense Portion in Depreciatio (S) (a"b*c) Asset Furniture Mac Delivery Truck Mac Original Basis (S) (a) Mi uarter Table (b)) 8.93% 10.93%) 19.20% 27.55%) 0.00% 50% 12.50% 50% 62.50% 50% 112.500|Not Applicable | 129,500 1st 5.023 1.769 6,336 56,787 66.000 Not Applicable l 329.8001st 126.000|Not Applicable l er Total Depreciation Deduction 69,916

Therefore, depreciation deduction is $69,916.