Question: Long Corporation has been unprofitable for several years and has substantial NOL carryovers. Therefore, the company has elected to use straight-line MACRS for property acquisitions.

Long has been unprofitable for several years and has substantial NOL carryovers. Therefore, the company has elected to use straight-line MACRS for property acquisitions. Long acquires, holds, or sells the following assets in 2015:

Long did not make the Sec. 179 election in any year, and elects out of bonus depreciation.
a. What is the depreciation deduction for each asset in 2015?
b. What amount of gain or loss does Long recognize on the properties sold in 2015?

Date Acquired Date Sold Original Cost Basis Selling Price Depreciation Method Recovery Period (Years) Equipment 6/1/15 Light duty truck (Nonpersonal-use 12/1/15 30,000 Furniture 3/111 Automobile 7/1/12 S40,000 SLADS s 8,000 SLADS 10,000 SLADS 12115 2000 10,000 SLADS

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