Morton Corp., a calendar-year C corporation, started business in Year 1. In Year 5, the company sold its office building and office furniture, and purchased a new office building and office furniture. The company continued to use the computers purchased the previous year for part of the offices in the new building, and purchased new computers in Year 5 for the other offices. There were no other assets purchased in Years 1 through 5. Morton Corp. uses MACRS for tax depreciation.

The table below details the company's accumulated depreciation account for Year 5. Using the information provided in the table and the MACRS depreciation schedules provided in the exhibit, analyze each asset and determine the asset's Year 5 beginning accumulated depreciation, Year 5 MACRS depreciation deduction, total accumulated depreciation for Year 5 asset dispositions, and Year 5 ending accumulated depreciation. Enter the appropriate amounts for each asset as positive values in the highlighted cells in the table below. Use whole dollar amounts, and if the amount is zero, enter a zero (0)

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EXHIBITS MACRS Depreciation Schedules close all exhibits A B C D E F H Year 5 Beginning Year 5 MACRS Total Accum. Year 5 Deprec. for Ending 1 Date Placed Date of Asset in Service Accumulated Depreciation Year 5 Asset Accumulat Disposition Cost Basis Depreciation Deduction Dispositions Depreciati New office Sept. 9, Year 123 123 2 $500,000 building 5 123 123 123 Old office Dec. 3, Year 3 Sept. 1, Year 5 $400,000 building 1 New office Oct. 23, Year 123 123 23 $140,000 furniture 5 Old office Feb. 17, Aug. 10, Year 123 123 123 5 $100,000 furniture Year 2 5 Jan. 15, Year 6 Computers I 123 123 $50,000 4 Sept. 28, 7 Computers II 123 123 $60,000 23 Year 5 8 Totals $0 50 EXHIBITS MACRS Depreciation Schedules close all exhibits A B C D E F H Year 5 Beginning Year 5 MACRS Total Accum. Year 5 Deprec. for Ending 1 Date Placed Date of Asset in Service Accumulated Depreciation Year 5 Asset Accumulat Disposition Cost Basis Depreciation Deduction Dispositions Depreciati New office Sept. 9, Year 123 123 2 $500,000 building 5 123 123 123 Old office Dec. 3, Year 3 Sept. 1, Year 5 $400,000 building 1 New office Oct. 23, Year 123 123 23 $140,000 furniture 5 Old office Feb. 17, Aug. 10, Year 123 123 123 5 $100,000 furniture Year 2 5 Jan. 15, Year 6 Computers I 123 123 $50,000 4 Sept. 28, 7 Computers II 123 123 $60,000 23 Year 5 8 Totals $0 50

Answer rating: 100% (QA)

Asset A New office building Year 5 Beginning Accumulated Depreciation 123 Year 5 MACRS Depreciation Deduction 123 assuming this is the full deduction ... View the full answer