MACRS 40% Test and Partial Year Depreciation. Large Corporation acquired and placed in service the following 100% business-use assets. Large did not elect Sec. 179 expensing on any of these properties, and elected out of bonus depreciation for all of them.
Truck (light-duty, modified non-personal use) costing $36,000: Placed in service on March 3, 2013 with a 5-year MACRS recovery period.
Machinery costing $85,000: Placed in service on November 15, 2013 with a 7-year MACRS recovery period.
Land costing $90,000: Placed in service on October 12, 2013.
Building costing $280,000: Placed in service on December 4, 2013 with a 39-year MACRS recovery period.
a. What is Large's total depreciation deduction in 2013?
b. Large Corporation sells the machinery on February 2, 2015 and sells the building on September 18, 2015. What are the adjusted bases of these two assets on the dates of sale (compute accumulated depreciation to date of sale)?