EC’s regular tax depreciation for the year is correctly calculated as $350,000 before considering the current year fixed asset additions of $840,000 (see table below). EC wants to claim the fastest recovery method(s) possible on these asset additions without electing any §179 expensing.

Total current year asset additions are as follows (all the equipment purchased was new):

Description	Date Purchased	Amount
5-year MACRS Property	October 2, 2014	$480,000
7-year MACRS Property	September 10, 2014	$320,000
Delivery Truck (over 6,000 lbs): 5-year MACRS Property	October 12, 2014	$40,000

What is EC's total tax depreciation?

Answer rating: 100% (QA)

To calculate ECs total tax depreciation we need to determine the depreciation for each asset using the appropriate MACRS recovery periods and rates He... View the full answer