At the beginning of the year Joshua began a calendar year end business and placed in service the following assets during the year. He does not use section 179 or bonus depreciation.

Compute the cost recovery (depreciation) for the first 3 years of service:

			Year 1	Year 2	Year 3
Computer Equipment	3/23/15	$50,000
Furniture	6/30/15	70,000
Truck (not listed property)	9/30/15	30,000
Commercial Building	10/11/15	300,000
Residential rental property	2/1/15	250,000

In April 1, 2015 Orange Corporation purchased and placed in service, seven year class assets costing 200,000 and five year class assets costing 140,000. Orange elects to expense the maximum amount Section 179. Orange does not take additional first year depreciation (bonus). Assume taxable is not a limitation. Determine Orange Corporations 2015 cost recovery.

Answer rating: 100% (QA)

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