Suppose a computer software developer for a certain company purchased a computer system for $65,000 on April 27, 2017. The computer system is used for business 100% of the time. The accountant for the company elected to take a $20,000 Section 179 deduction, and the asset qualified for a special depreciation allowance.

(a)

What was the basis for depreciation (in $) of the computer system? (See Table 17-4.)

$

(b)

What was the amount (in $) of the first year's depreciation using MACRS? (See Table 17-1 and Table 17-2)

$

TABLE 17-4 Special Depreciation Allowance \begin{tabular}{lc} \multicolumn{1}{c}{ Certain Qualified } & \\ Asset Placed into Service & Special Allowance \\ \hline September 11, 2001-May 5, 2003 & 30% \\ May 6, 2003-January 1, 2005 & 50% \\ December 31, 2007-September 27, 2017 & 50% \\ September 28, 2017-December 31, 2022 & 100% \end{tabular} \begin{tabular}{|l|ll} TABLE 17-1 MACRS Property Classes (Recovery Period) General Depreciation System \end{tabular} TABLE 17-2 Cost Recovery Percentage Table MACRS