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Way Corporation disposed of the following tangible personal property assets in the current year. Asset Date...

Way Corporation disposed of the following tangible personal property assets in the current year.

Asset Date Acquired Date Sold Convention Original Basis
Furniture (7-year) 5/12/15 7/15/19 HY 92,500
Machinery (7-year) 3/23/16 3/15/19 MQ 109,500
Delivery truck* (5-year) 9/17/17 3/13/19 HY 50,000
Machinery (7-year) 10/11/18 8/11/19 MQ 309,000
Computer (5-year) 10/11/19 12/15/19 HY 110,000

*Used 100 percent for business.

Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2019 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.)

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Answer:-

Assets Original Basis Quarter if Mid Quarter Rate Portion of year Depreciation Expense
Furniture (7-year) $     92,500.00 n/a 8.93% 50%                                       4,130
Machinery (7-year) $ 109,500.00 1st 10.93% 12.50%                                       1,496
Delivery truck (5-year) $     50,000.00 n/a 19.20% 50%                                       4,800
Machinery (7-year) $ 309,000.00 4th 27.55% 62.50%                                     53,206
Computer (5-year) $ 110,000.00 n/a 0.00% 50%                                              -  
Total Depreciaiton Expense                                     63,632

ekkarill92 answered 2 years ago
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