View the step-by-step solution to:

Question

Chaz Corporation has taxable income in 2019 of $312,000 for purposes of computing the §179 expense and acquired

the following assets during the year:

ASSET Placed in Service  Basis

Office furniture September 12 $780,000

Computer equipment February 10   930,000

Delivery truck August 21  68,000

Qualified improvement property September 30  1,500,000

Total   $3,278,000 

 

What is the maximum total depreciation deduction that Chaz may deduct in 2019? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)



Table 1.png

Table 5.pngTable 4.pngTable 3.pngTable 2 bottom.pngTable 2 bottom.png

Table 1.png

Table 1 MACRS Half-Year Convention
Depreciation Rate for Recovery Period
3-Year
5-Year
7-Year
10-Year
15-Year
20-Year
Year 1
33.33%
20.00%
14.29%
10.00%
5.00%
3.750%
Year 2
44.45
32.00
24.49
18.00
9.50
7.219
Year 3
14.81
19.20
17.49
14.40
8.55
5.677
Year 4
7.41
11.52
12.49
11.52
7.70
5.177
Year 5
11.52
8.93
9.22
6.93
5.713
Year 6
5.76
8.92
7.37
6.23
5.285
Year 7
8.93
6.55
5.90
4.888
Year S
4.46
6.55
5.90
4.522
Year 9
6.56
5.91
4.462
Year 10
6.55
5.90
4.461
Year 11
3.28
5.91
4.462
Year 12
5.90
4.461
Year 13
5.91
4.462
Year 14
5.90
4.461
Year 15
5.91
4.462
Year 16
2.95
4.461
Year 17
4.462
Year 18
4.461
Year 19
4.462
Year 20
4.461
Year 21
2.231

Table 2 bottom.png

TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
15.00%
10.71%
Year 2
34.00
25.51
Year 3
20.40
18.22
Year 4
12.24
13.02
Year 5
11.30
9.30
Year 6
7.06
8.85
Year 7
8.86
Year S
5.53
TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter
Depreciation Rate for Recovery Period
5-Year
7-Year
Year 1
5.00%
3.57%
Year 2
38.00
27.55
Year 3
22.80
19.68
Year 4
13.68
14.06
Year 5
10.94
10.04
Year 6
9.58
8.73
Year 7
8.73
Year S
7.64

Table 3.png

TABLE 3 Residential Rental Property Mid-Month Convention Straight Line-27.5 Years
Month Property Placed in Service
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month S
Month 9
Month 10 Month 11 Month 12
Year 1
3.485%
3.182%
2.879%
2.576%
2.273%
1.970%
1.667%
1.364%
1.061%
0.758%
0.455%
0.152%
Year 2-9
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
3.636
Year 10
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 11
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 12
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 13
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 14
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 15
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 16
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 17
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 18
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 19
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 20
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 21
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 22
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 23
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 24
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 25
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 26
3.637
3.637
3.637
3.637
3.637
3.637
3.636
3.636
3.636
3.636
3.636
3.636
Year 27
3.636
3.636
3.636
3.636
3.636
3.636
3.637
3.637
3.637
3.637
3.637
3.637
Year 28
1.97
2.273
2.576
2.879
3.182
3.485
3.636
3.636
3.636
3.636
3.636
3.636
Year 29
0.152
0.455
0.758
1.061
1.364
1.667

Table 4.png

TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line-31.5 Years (for assets placed in service before May 13, 1993)
Month Property Placed in Service
Month 1
Month 2
Month 3
Month 5
Month 6
Month 7
Month S
Month 10
Month 11
Year 1
3.042%
2.778%
2.513%
1.984%
1.720%
1.455%
1.190%
0.926%
0.397%
0.132%
Year 2-7
3.175
3.175
3.175
3.175
3.175
3.175
3.175
3.175
Year S
3.175
3.174
3.175
3.175
3.175
3.175
3.175
Year 9
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
Year 10
3.175
3.174
3.175
3.174
3.175
3.174
3.174
3.175
Year 11
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
Year 12
3.175
3.174
3.175
3.175
3.174
3.175
3.174
3.174
3.175
Year 13
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
Year 14
3.175
3.174
3.175
3.175
3.174
3.175
3.174
3.175
3.174
Year 15
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
Year 16
3.175
3.174
3.175
3.175
3.174
3.175
3.174
3.175
3.174
Year 17
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
3.175
3.174
Year 18
3.175
3.174
3.174
3.175
3.175
3.174
3.175
3.174
3.175
3.174
Year 19
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
Year 20
3.174
3.175
3.174
3.175
3.175
3.174
3.174
3.175
3.174
Year 21
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
Year 22
3.174
3.175
3.174
3.175
3.175
3.174
3.175
3.174
3.175
Year 23
3.174
3.175
3.174
3.175
3.174
3.174
3.115
3.174
3.175
3.174
Year 24
3.175
3.174
3.175
3.175
3.174
3.175
3.175
Year 25
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
3.175
Year 26
3.175
3.174
3.175
3.175
3.174
3.175
3.175
Year 27
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
3.175
Year 28
3.175
3.174
3.175
3.175
3.175
3.174
3.175
3.175
3.174
Year 29
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
3.175
Year 30
3.175
3.174
3.175
3.175
3.175
3.174
3.175
3.175
3.174
Year 3]
3.174
3.175
3.174
3.175
3.174
3.174
3.175
3.174
3.175
3.174
3.175
Year 32
1.720
2.249
2.513
2.778
3.042
3.175
3.174
3.175
3.175
Year 33
0.132
0.661
1.190

Table 5.png

TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line-39 Years (for assets placed in service on or after May 13, 1993)
Month Property Placed in Service
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month S
Month 9
Month 10
Month 11
Month 12
Year 1
2.461%
2.247%
2.033%
1.819%
1.605%
1.391%
1.177%
0.963%
0.749%
0.535%
0.321%
0.107%
Year 2-39
2.564
2.564
2.564
2.564
2.564
2.564
2.564
2.564
2.564
2.564
2.564
2.564
Year 40
0.107
0.321
0.535
0.749
0.963
1.177
1.391
1.605
1.819
2.033
2.247
2.461

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Accounting tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors