I have completed this, but would like for it to be looked over for possible errors. I am getting different answers than my teammate. Please see attached document for what I came up with.

Create a 400 - to 700 -word document that addresses the two questions at the end of the problem.The question I need to answer is at bottom with number 1 beside it. If you feel a chart created can answer one of the questions that is OK. Include supporting calculations to support and any answer involving numbers/amounts.

Below is information needed to answer the first question at bottom of the information.

Comprehensive Problem for Chapters 7 and 8. Sam Johnson started a small machine shop, Machines, Inc., in his garage and incorporated it in March of 2013 as a calendar-year corporation. At that time, he began using his personal computer and tools solely for the business as part of his contribution to the corporation. The computer cost $2,700 but had a fair market value of only $900 at conversion and the tools, which had cost $1,500, were valued at $1,100. During 2013, Machines, Inc. purchased two machines: Machine A, purchased on May 2, cost $24,000; Machine B, purchased on June 5, cost $40,000.

The corporation expensed Machine A under Section 179. The computer, tools, and Machine B were depreciated using accelerated MACRS only. The corporation did not take any depreciation on the garage nor did Sam charge the business rent because the business moved to a building the business purchased for $125,000 on January 5, 2014. On January 20, 2014, Machines purchased $4,000 of office furniture and on July 7, it purchased Machine C for $48,000. It depreciated these assets under MACRS (including allowable bonus depreciation), but did not use Section 179 expensing. Machines acquired no new assets in 2015.

On February 4, 2016, Machines bought a new computer system for $5,100. It sold the old computer the same day for $300. On March 15, it sold Machine A for $6,000 and purchased a more versatile machine for $58,000. On August 15, Machines sold bonds it had purchased with $9,800 of the cash Sam had originally contributed to the corporation for $10,400 to pay creditors. The business takes only the maximum allowable MACRS depreciation deduction on assets purchased in 2016 with no Section 179 expensing or bonus depreciation.

1. 1. Determine Machines, Inc.'s depreciation expense deductions for 2013 through 2016.

Deductions and Depreciation for 2013 through 2016 Machine's Inc., started in March 2013 and used Section 179 deduction to figure Machine A's depreciation. By using this method, Machine A in year 2013 Section 179 deduction is $24,000.00; the basis is $0; first year of depreciation is $0; the first-year depreciation using the double declining half year method is $0. There is no other deductions or depreciation for years 2014, 2015, and 2016 for Machine A. Machine B's depreciation has a cost of recovery period of seven years with the basis at $40,000. Using the 200% declining balance and the half year method the depreciation for year 2013 is $5,714.00, year 2014 is $9,796.00, 2015 is $6,997.00, and year 2016 is $4,998.00. The tools Machine, Inc., used are calculated by the basis of $1,100.00 using the cost recovery period of five years. The method used to calculate the depreciation is 200% declining balance and mid-quarter method. The depreciation for year 2013 is $385.00, year 2014 is $286.00, year 2015 is $172.00, and year 2016 is $121.00. The computer the business used has a basis of $900.00. By using the cost recovery period of five years along with 200% declining balance and mid quarter method found the depreciation of the computer. The depreciation for year 2013 is $315.00, year 2014 is $234.00, year 2015 is $140.00, and year 2016 is $99.00. The building placed in service January 2014 has a basis of $125,000.00. The cost recovery period for the building is 39 years; using the 200% declining balance and mid-month method in configuring the depreciation for Machine's Inc. building. The depreciation for year 2014 is $6,143.00, year 2015 is $6,095.00, and year 2016 is $5,783.00. Machine C's depreciation is calculated on basis of $48,000.00; with cost recovery of seven years. The method used is the 200% declining balance and mid quarter method. The depreciation for year 2014 is $5,143.00, year 2015 is $12,245.00, and year 2016 is $8,746.00. In 2016, Machine's Inc. purchased a new computer which has a basis of $5,100.00 and cost recovery period of five years. The method used is 200% declining balance and mid quarter method. The only depreciation for the new computer system is for year 2016; which is $1,785.00. Machine's Inc. purchased a new machine for the company which has a basis $58,000.00 and a recovery period of seven years. The depreciation method for configuring the new machine is the 200% declining balance and mid quarter method. The new machine was purchased in 2016; therefore, year 2016 depreciation is $14,500.00. References CalcXML. (2017). What are my tax savings with Section 179 deduction? Retrieved from https://www.calcxml.com/calculators/section-179-deduction Peterson, D. (2017). Free online calculator: MACRS Depreciation Calculator Based on IRS Publication 946. Retrieved from http://www.free-online-calculator-use.com/macrs-depreciation-calculator.html