Small Corporation purchased and placed in service the following 100% business-use assets (all of the assets were purchased new). Assume that Small purchased these assets in Year 1, when 50% bonus depreciation was available on eligible property (as “eligible property” has been typically defined for years when bonus depreciation was available). Small claimed bonus depreciation but no Sec. 179 election on all eligible property in Year 1.
• Truck (light-duty, modified non-personal use) costing $20,000: Placed in service on February 15, Year 1 with a 5-year MACRS recovery period.
• Machinery costing $50,000: Placed in service on May 1, Year 1 with a 7-year MACRS recovery period.
• Land costing $60,000: Placed in service on July 1, Year 1.
• Building costing $100,000: Placed in service on December 1, Year 1 with a 39-year MACRS recovery period.
• Equipment costing $40,000: Acquired on December 24, Year 1 and placed in service on January 5, Year 2 with a 5-year MACRS recovery period.
What are Small’s total depreciation deductions in Year 1 and Year 2?