Problem $07-14($Algo$)[$LO $7-5]$

Herelt, Incorporated, a calendar year taxpayer, purchased equipment for $$396,800$ and placed it in service on April $1,$

The equipment was seven$-$year recovery property, and Herelt used the half$-$year convention to compute MACRS

depreciation. Use Table $7-2.$

Required:

a$.$ Compute Herelt's MACRS depreciation with respect to the equipment for $2023$ and $2024.$

b$.$ Compute Herelt's adjusted basis in the equipment on December $31,2024.$

c$.$ Compute Herelt's MACRS depreciation for $2025$ if it disposes of the equipment on February $9,2025.$

Complete this question by entering your answers in the tabs below.

Compute Herelt's MACRS depreciation with respect to the equipment for $2023$ and $2024.$

Note: Round your final answers to the nearest whole dollar amount.