Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] DLW Corporation acquired and placed in service the following assets during the year: Date Acquired 2/28 Cost Basis Asset Computer equipment Furniture Commercial building 18,800 2/9 26,600 348,000 10/10 Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is DLW's year 1 cost recovery for each asset? Year 1 Cost Recove Asset Computer equipment Furniture Commercial building Total

Explanation / Answer

a) Under the half year convention for personal property :-

b)

Assets Purchase Date Cost Basis (A) Rate (B) Depreciation (A*B) Computer Equipment Feb. 28 $18800 20% $3760 Furniture Feb. 9 $26600 14.29% $3801 Building Oct. 10 $348000 0.321% $1117 Total 8678

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