Debra acquired the following new assets during 2013:
| Date |
Asset |
Cost |
| April 11 |
Office Furniture |
$40,000 |
| July 28 |
Trucks |
40,000 |
| November 3 |
Computers |
70,000 |
|
Debra does not elect immediate expensing under § 179. She does take the additional first-year depreciation.
If required, round your answers to the nearest dollar. Click here to access Table 8.1 and Table 8.2 of the textbook.
a. What MACRS convention applies to the assets?
SelectMid-quarterMid-monthHalf-year Item 1
b. What class of property is each asset for MACRS?
SelectFurniture, seven-year; trucks, five-year; computers, five-yearFurniture, five-year; trucks, three-year; computers, three-yearFurniture, seven-year; trucks, three-year; computers, five-yearFurniture, five-year; trucks, five-year; computers, five-year Item 2
c. The cost recovery for the current year is:
| Furniture: |
$ |
| Trucks: |
$ |
| Computers: |
$ |