DLW Corporation acquired and placed in service the following assets during the y

Question

DLW Corporation acquired and placed in service the following assets during the year: Date Cost Basis Asset Computer equipment Furniture Commercial building 3/12 4/4 10/20 19,700 20,800 293,000 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? ar Asset Cost Recove Computer equipment Furniture Commercial building Total

Explanation / Answer

Assets Purchase date Quarter Recovary period Original basis Rate Calculation Depreciation computer equipment 12 th march 1st 5 years                19,700 20% 19700*20%                           3,940 Furniture 4 th april 2nd 7 years                20,800 14.29% 20800*14.29%                           2,972 Commercial Building 20th oct 3rd 39 years              293,000 0.963% 293000*0.963%                           2,822 Total Depreciation expenses                           9,734

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