On April $1,2024,$ Titan Corporation purchases office equipment for $$52,000.$ For tax reporting, the company uses MACRS and classifies the equipment as five$-$year personal property. In $2024,$ this type of equipment is eligible for $60\%$ first$-$year bonus depreciation. For financial reporting, the company uses straight$-$line depreciation. Assume the equipment has no residual value.

Required:

$1..$Calculate annual depreciation for the five$-$year life of the equipment according to MACRS. The company uses the half$-$year convention for tax reporting purposes.

$2.$Calculate annual depreciation for the five$-$year life of the equipment according to straight$-$line depreciation. The company uses partial$-$year depreciation based on the number of months the asset is in service for financial reporting purposes.

$3.$In which year$($s$)$ is tax depreciation greater than financial reporting depreciation?

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$c$|\}\{$ Property class $\}\backslash \backslash$

$\backslash$hline Year & Three$-$Year & Five$-$Year & Seven$-$Year $\backslash \backslash$

$\backslash$hline $1$ & $\backslash (33\mathrm{.}33\backslash \%\backslash )$ & $\backslash (20\mathrm{.}00\backslash \%\backslash )$ & $\backslash (14\mathrm{.}29\backslash \%\backslash )\backslash \backslash$

$\backslash$hline $2$ & $44\mathrm{.}45$ & $32\mathrm{.}00$ & $24\mathrm{.}49\backslash \backslash$

$\backslash$hline $3$ & $14\mathrm{.}81$ & $19\mathrm{.}20$ & $17\mathrm{.}49\backslash \backslash$

$\backslash$hline $4$ & $7\mathrm{.}41$ & $11\mathrm{.}52$ & $12\mathrm{.}49\backslash \backslash$

$\backslash$hline $5$ & & $11\mathrm{.}52$ & $8\mathrm{.}93\backslash \backslash$

$\backslash$hline $6$ & & $5\mathrm{.}76$ & $8\mathrm{.}92\backslash \backslash$

$\backslash$hline $7$ & & & $8\mathrm{.}93\backslash \backslash$

$\backslash$hline $8$ & & & $4\mathrm{.}46\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Required $1$

Required $2$

Required $3$

Calculate annual depreciation for the five$-$year life of the equipment according to MACRS. The co convention for tax reporting purposes.

Note: Round "Depreciation Rate per MACRS" answers to $2$ decimal places. Round your final answ

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Year & Depreciation Basis for MACRS & x & Depreciation Rate per MACRS & & $=$ & MACRS Depreciation & Bonus Depreciation & Total Depreciation $\backslash \backslash$

$\backslash$hline & & & & & & & & $\backslash \backslash$

$\backslash$hline $2024$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline $2025$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline $2026$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline $2027$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline $2028$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline $2029$ & & $\backslash (\backslash$times $\backslash )$ & & $\backslash \%$ & & & & $\backslash \backslash$

$\backslash$hline Total & & $\backslash (\backslash$times $\backslash )$ & $0\mathrm{.}00$ & $\backslash \%$ & $=$ & $\backslash$$ $0$ & $\backslash$$ $0$ & $\backslash$$ $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Calculate annual depreciatio partial$-$year depreciation ba:

In which year$($s$)$ is tax depreciation greater than financial reporting depreciation?

In which year$($s$)$ is tax depreciation greater than financial reporting depreciation?