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 A?§ 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 andTable 8.2 of the textbook.
a. What MACRS convention applies to the assets?
Select
Mid-quarter
Mid-month
Half-year
Item 1
b. What class of property is each asset for MACRS?
Select
Furniture, seven-year; trucks, five-year; computers, five-year
Furniture, five-year; trucks, three-year; computers, three-year
Furniture, seven-year; trucks, three-year; computers, five-year
Furniture, five-year; trucks, five-year; computers, five-year
Item 2
c. The cost recovery for the current year is:
|
Furniture:
|
$
|
|
Trucks:
|
$
|
|
Computers:
|
$
|
|