Question

100 Check my wotn Cost Date Acquired 3/23 5/12 9/17 10/11 10/11 Ваsis Asset 9,200 11,200 10,000 312,000 Computer equipment Dog-grooming furniture Pickup truck Commercial building Land (one acre) 122,000 Assuming Poplock does not elect $179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) ces a. What is Poplock's year 1 depreciation deduction for each asset? Depreciation Deduction Asset Computer equipment Dog grooming furniture Pickup truck Commercial building Land Total <Prev 5 6 E of 35 Next > 148

Answer 1

Requirement a: Compute depreciation deduction as follows

Particulars	Purchase Date	Quarter	Recovery Period	Original Basis	Rate	Cost Recovery
				(a)	(b)	(a) × (b)
Computer equipment	Mar. 23	1st	5 Years	$9,200	20.00%	$1,840
Dog grooming furniture	May 12	2nd	7 Years	$11,200	14.29%	$1,600
Pickup truck	Sept. 17	3rd	5 Years	$10,000	20.00%	$2,000
Commercial building	Oct. 11	4th	39 Years	$312,000	0.535%	$1,669
Land	Oct. 11	4th		$122,000		$0
Total depreciation deduction						$7,110

Note:

Half-year convention applies to computer equipment, dog grooming furniture and pickup truck and mid-month convention applies commercial building. Land is not a depreciable asset.