Problem 8-7 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2)

Calculate the following:

a. The first year of depreciation on a office building that cost $250,000 purchased June 2, 2021.

b. The second year (2022) of depreciation on a computer that cost $5,000 purchased in May 2021, using the half-year convention and accelerated depreciation considering any bonus depreciation taken.

c. The first year of depreciation on a computer costing $2,800 purchased in May 2021, using the half-year convention and straight-line depreciation with no bonus depreciation.

d. The third year of depreciation on business furniture costing $10,000 purchased in March 2019, using the half-year convention and accelerated depreciation but no bonus depreciation.