Question: On November 29th, 2012, Jeffrey White purchased a piece of equipment (7-year property) used to manufacture roof tiles. This equipment cost Jeffrey $300,000.Jeffery did not purchase any other personal properties in 2012. Assume Jeffrey cannot take any bonus depreciation or section 179 expense on the equipment.
a) What is Jeffrey's MACRS deduction for the piece of equipment used to manufacture roof tiles in 2012?
b) Assume the same facts as above. Additionally, now assume that Jeffrey sells the piece of equipment in May of 2014. What is Jeffrey's depreciation deduction for the piece of equipment in 2014?