Chapter 10 Assignment eBook JE MACRS Depreciation Tables MACRS (LO. 6) Harold purchases the following business assets on the dates indicated: Asset Date Purchased Cost Recovery Period Photocopy equipment 2/14/19 $50,000 5 Dump truck 7/16/19 $300,000 5 Bus 12/24/19 $1,021,000 5 Refer to the MACRS Depreciation Tables to answer the following questions. a. Harold's 2019 cost-recovery deduction if he elects not to daim bonus depreciation and does not elect expense any of the assets under Section 179 is $ 113,550 b. What could Harold do to maximize his 2019 deduction? convention by electing to expense Because the calculation of purchases for purposes of the 40% rule uses the depreciable basis placed in service each quarter , Harold can avoid the mid-quarter $1,020,000 of the bus This reduces the depreciable basis of the bus to $1,000 and the total depreciable basis placed in service during the year to $351,000. 1,371,000 of depreciation in 2019 ($ election to expense Based on the election plus expense determined above, Harold will be able to use the regular MACRS method. His total deduction is s of regular MACRS Oost-recovery)