Comprehensive Problem 8-1

Sherrys bookkeeper has provided the book-basis fixed asset roll forward to be used in computing the depreciation. The tax lives of the assets are the same as the book lives shown in the fixed asset schedule. The truck is not considered a passenger automobile for purposes of the luxury automobile limitations. No Section 179 election is made. For tax purposes, Sherry elected out of bonus depreciation in all years except 2018.

Required: Complete Sherry's Schedule C and Form 4562.

Schedule of Fixed Asset Rollforward

Sherrys bookkeeper has provided the following book-basis fixed asset rollforward:

Hopson Retail Fixed Asset Rollforward 12/31/2018 (book basis)
		DEPR		COST		2016	2017	2018		ACCUM		NET BOOK
ASSET	IN SERVICE	METHOD	LIFE	BASIS		DEPR	DEPR	DEPR		DEPR		VALUE
CASH REGISTER	2/15/2016	SL	5	9,800.00		1,796.67	1,960.00	1,960.00		5,716.67		4,083.33
2016 TOTAL ADDITIONS				9,800.00		1,796.67	1,960.00	1,960.00		5,716.67		4,083.33
RETAIL FIXTURES	10/12/2017	SL	7	4,500.00			160.71	642.86		803.57		3,696.43
FURNITURE	10/12/2017	SL	7	3,600.00			128.57	514.29		642.86		2,957.14
2017 TOTAL ADDITIONS				8,100.00		-	289.28	1,157.15		1,446.43		6,653.57
TOTAL				17,900.00		1,796.67	2,249.28	3,117.15		7,163.10		10,736.90
DELIVERY TRUCK	6/1/2018	SL	5	32,000.00				3,733.33		3,733.33		28,266.67
DESK AND CABINETRY	6/1/2018	SL	7	17,000.00				1,416.67		1,416.67		15,583.33
COMPUTER	6/1/2018	SL	5	3,500.00				408.33		408.33		3,091.67
2018 TOTAL ADDITIONS				52,500.00		-	-	5,558.33		5,558.33		46,941.67
TOTAL				70,400.00		1,796.67	2,249.28	8,675.48		12,721.43		57,678.57

Form 4562

Complete Sherry's Form 4562 (page one).

Note: Compute depreciation by asset, rounding each amount to the nearest whole dollar.

Click here to access depreciation table 8-2 and here for depreciation table 8-4.

I need help calculating line 17 (MACRS deductions for assets placed in service in tax years beginning before 2018) of form 4562.

I know that line 14 is 52,500, but line 17 is holding me back on line 22.