Problem: MACRS
Compute the MACRS deduction allowable for 2013, 2014 and 2015 for Oak Corp. If any asset was removed from service compute gain or loss on that asset.
In March 2013 Oak Corp. purchased and place in use custom made molds and fixtures for use in manufacturing automobile fenders. Cost $200,000.
On September 15, 2014 Oak Corp. purchased and placed in use a new computer system for their office, cost $65,000.
On December 1, 2015 Oak purchased desks and office furniture for its office. Cost was $75,000. Because of modifications needed to accommodate the new partitions, they were not installed until February 10, 2016.
The salesperson who sold them the new computer in 2014 told them the computer was the newest most up to date equipment available but was really outdated and obsolete before it was purchased. On December 30, 2015 it was removed from the office and placed at the curb for garbage pick-up. On January 2, 2016 a new system was installed.
Oak Corp. did not make any special elections concerning any of these purchases.