DEPRECIATION ASSIGNMENT
Polo Products manufactures truck and bus components. In year 1 it acquires and puts into service the following:
ASSET DATE COST
UsedPress Feb. 15 $400,000
Special Tools (new) Feb. 15 $275,000
Computer Equipment (new) July 1 $600,000
New Machinery July 1 $925,000
You may find the following information helpful:
DESCRIPTION CLASS LIFE GDS ADS
Equipment - Manufacture of Motor Vehicles 12 7 12
Special Tooling - Manufacture of Motor Vehicles 3 3 3
Computer Hardware 6 5 5
Determine each asset's entire depreciation schedule using:
1. MACRS and claiming bonus depreciation on the computer equipment, and the New Machinery's date is October 15, Year 1.
For purposes of this assignment assume 2015 is year 1. For the assignment, do not worry about actual calendar years, just identify year 1, year 2, etc.
While not required, use of Excel or other spreadsheet software is recommended for this assignment.