January 1, Peter began a calendar year business. It is a dog grooming business Favre's Palace. Peter place the following assets in service during the year:
|
Asset
|
Date Acquired
|
Cost Basis
|
|
Computer equipment
|
March 23
|
$ 5,000
|
|
Dog grooming furniture
|
May 12
|
$ 7,000
|
|
Pickup truck
|
September 17
|
$ 10,000
|
|
Commercial building
|
October 11
|
$270,000
|
|
Land (one acre)
|
October 11
|
$ 80,000
|
|
|
|
Assume Peter does not elect section 179 expensing or bonus depreciation, answer the following;
1. What is Favre's Palace year 1 depreciation for each asset?
2. What is Favre's Palace year 2 depreciation for each asset?