Question

Way Corporation disposed of the following tangible personal property assets in the current year. Date Date Original...

Way Corporation disposed of the following tangible personal property assets in the current year.

Date Date Original
Asset Acquired Sold Convention Basis
Furniture (7-year) 5/12/15 7/15/19 HY $ 72,500
Machinery (7-year) 3/23/16 3/15/19 MQ 89,500
Delivery truck* (5-year) 9/17/17 3/13/19 HY 34,000
Machinery (7-year) 10/11/18 8/11/19 MQ 288,200
Computer (5-year) 10/11/19 12/15/19 HY 94,000

*Used 100 percent for business.

Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2019 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.)

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Answer #1

Asset

Original basis

Quarter

If mid-quarter

Rate

Portion of Year

Depreciation expense

Furniture

72500

n/a

8.93%

50.00%

3237

Machinery

89500

1st

10.93%

12.50%

1223

Delivery truck

34000

n/a

19.20%

50.00%

3264

Machinery

288200

4th

27.55%

62.50%

49624

Computer

94000

n/a

0.00%

50.00%

0

Total Depreciation Expense

$57348

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