Exercise 8-19 (Algorithmic) (LO. 2)

Euclid acquires a 7-year class asset on May 9, 2020, for $143,600 (the only asset acquired during the year). Euclid does not elect immediate expensing under 179. He does not claim any available additional first-year depreciation.

If required, round your answers to the nearest dollar.

Calculate Euclid's cost recovery deduction for 2020 and 2021. 2020: $fill in the blank 1 2021: $fill in the blank 2

MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates)

*Switchover to straight-line depreciation.

Exhibit 8.4

MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates)

For Property Placed in Service after December 31, 1986 (Partial Table)
3-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	58.33	41.67	25.00	8.33
2	27.78	38.89	50.00	61.11
5-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	35.00	25.00	15.00	5.00
2	26.00	30.00	34.00	38.00
7-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	25.00	17.85	10.71	3.57
2	21.43	23.47	25.51	27.55

Exhibit 8.5

MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention

For Property Placed in Service after December 31, 1986
			Other Recovery Years				Last Recovery Year
MACRS Class	% First Recovery Year		Years		%		Year		%
3-year	16.67		23		33.33		4		16.67
5-year	10.00		25		20.00		6		10.00
7-year	7.14		27		14.29		8		7.14
10-year	5.00		210		10.00		11		5.00
15-year	3.33		215		6.67		16		3.33
20-year	2.50		220		5.00		21		2.50

Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS).

Exhibit 8.6Alternative Minimum Tax: 150% Declining-Balance Assuming Half-Year Convention (Percentage Rates)

* The figures in this table are taken from the official table that appears in Rev.Proc. 8757, 19872 C.B. 687. Because of its length, the complete table is not presented.

**Switchover to straight-line depreciation.

Exhibit 8.7

ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates)

For Property Placed in Service after December 31, 1986 (Partial Table)
Recovery Year	5-Year Class	10-Year Class		12-Year Class
1	10.00	5.00		4.17
2	20.00	10.00		8.33
3	20.00	10.00		8.33
4	20.00	10.00		8.33
5	20.00	10.00		8.33
6	10.00	10.00		8.33
7		10.00		8.34
8		10.00		8.33
9		10.00		8.34
10		10.00		8.33
11		5.00		8.34
12				8.33
13				4.17

Exhibit 8.8MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* (Percentage Rates)

*The official tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances, this will produce a difference of .001 for the last digit when compared with the official tables.

Exhibit 8.9ADS Straight-Line for Real Property Assuming Mid-Month Convention (Percentage Rates)

*Also used for residential rental pro