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 $30,000 Section 179 deduction, and the asset qualified for a special depreciation allowance.

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

$_____________

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

$ ______________________

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(Please keep them in the graph below so it is easy to understand thanks)

Sara Industries purchased a metal-working lathe for $36,000. This item will be used for business 90% of the time. Accountants elected to take a $15,000 section 179 deduction and utilize the special depreciation allowance of 50%.

Prepare a depreciation schedule (in $) using MACRS.

Round all dollar amounts to the nearest cent.

Sara Industries MACRS Depreciation ScheduleMetal-working Lathe

End of Year	Basis for Depreciation		Recovery Percent	=	MACRS Depreciation Deduction	Accumulated Depreciation	Book Value
							$
1	$		33.33%	=	$	$	$
2	$		44.45%	=	$	$	$
3	$		14.81%	=	$	$	$
4	$		7.41%	=	$	$	$

TABLE 17-4 Special Depreciation Allowance Certain Qualified Asset Placed into Service Special Allowance 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% TABLE 17-1 MACRS Property Classes (Recovery Period) General Depreciation System TAB LE 17-2 Cost Recovery Percentage Table MACRS