Problem - DLW Corporation acquired and placed in service the following assets during the year:
|
Asset
|
Date Acquired
|
Cost
Basis
|
|
Computer equipment
|
3/13
|
$ 15,200
|
|
Furniture
|
4/30
|
20,500
|
|
Commercial building
|
11/18
|
297,000
|
Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions:
a. What is DLW's year 1 cost recovery for each asset?
b. What is DLW's year 3 cost recovery for each asset if DLW sells all of these assets on 4/14 of year 3?