Equipment (partial IRS table) (Half-Year Convention, 200% Declining Balance) Year 3-year 5-year 7-year 1 33.33% 14.29% 2 44.45% 24.49% 3 14.81% 7.41% 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 17.49% 12.49% 5 8.93% 8.92% 6 7 8.93% 8 4.46% Total Depreciation 100% 100% 100% Year Nonresidential Real Property Mid-Month Convention Straight Line-39 Years Month property placed in service 2 3 4 5 6 8 9 10 11 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 1 1 2-39 12 0.107% 2.564 40 2.461 Passenger Autos Placed in Service in 2016 Light SUV Autos (cars) Pickups and Vans* Bonus No bonus Bonus No bonus taken taken or used vehicle taken or used vehicle 1st year $11,160 $3,160 $11,560 $3,560 2nd year 5,100 5,100 5,700 5,700 3rd year 3,050 3,050 3,350 3,350 4th yr and after 1,875 1,875 2,075 2,075 *Weigh 6,000 pounds or less and are not specially modified. NOTE: The maximum Section 179 deduction for tax years beginning in 2016 is $500,000. Use the following information to answer Questions 31-33: On September 2, 2016, a calendar-year company purchases a used machine (5-year property) for $510,000. 31. What is the maximum tax deduction for the machine in 2016? a. $506,doo b. $306,000 c. $102,000 d. $502,000 32. What is the maximum tax deduction for the machine in 2017? a. $17,600 b. $1,600 c. $3,200 d. $35,200 33. What is the maximum tax deduction for the machine in 2021 (Year 6)? a. $0, because the machine has a 5-year recovery period b. $576 c. $3,226 d. $6,451