Suppose a computer software developer for a certain company purchased a computer system for $$95,000$ on April $27,2017.$ The computer system is used for business $100\%$ of the time. The accountant for the company elected to take a $$10,000$ 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 $17-2)$

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BRECMBC$917.$II$\mathrm{.}002.$

and the asset qualified for a special depreciation allowance.

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

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$\backslash$$ $\backslash$boxed$\{42,5$ c$\}$

$\backslash ]$

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

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$\backslash$$ $8,5$

$\backslash ]$ TABLE $17-2$ Cost Recovery Percentage Table MACRS

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

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

Recovery $\backslash \backslash$

Year

$\backslash$end$\{$tabular$\}\}$ & $\backslash$multicolumn$\{6\}\{|$c$|\}\{$Depreciation Rate for Property Class$\}\backslash \backslash$

$\backslash$hline & $3-$year & $5-$year & $7-$year & $10-$year & $15-$year & $20-$year $\backslash \backslash$

$\backslash$hline $1$ & $33\mathrm{.}33\backslash \%$ & $20\mathrm{.}00\backslash \%$ & $14\mathrm{.}29\backslash \%$ & $10\mathrm{.}00\backslash \%$ & $5\mathrm{.}00\backslash \%$ & $3\mathrm{.}750\backslash \%\backslash \backslash$

$\backslash$hline $2$ & $44\mathrm{.}45$ & $32\mathrm{.}00$ & $24\mathrm{.}49$ & $18\mathrm{.}00$ & $9\mathrm{.}50$ & $7\mathrm{.}219\backslash \backslash$

$\backslash$hline $3$ & $14\mathrm{.}81$ & $19\mathrm{.}20$ & $17\mathrm{.}49$ & $14\mathrm{.}40$ & $8\mathrm{.}55$ & $6\mathrm{.}677\backslash \backslash$

$\backslash$hline $4$ & $7\mathrm{.}41$ & $11\mathrm{.}52$ & $12\mathrm{.}49$ & $11\mathrm{.}52$ & $7\mathrm{.}70$ & $6\mathrm{.}177\backslash \backslash$

$\backslash$hline $5$ & & $11\mathrm{.}52$ & $8\mathrm{.}93$ & $9\mathrm{.}22$ & $6\mathrm{.}93$ & $5\mathrm{.}713\backslash \backslash$

$\backslash$hline $6$ & & $5\mathrm{.}76$ & $8\mathrm{.}92$ & $7\mathrm{.}37$ & $6\mathrm{.}23$ & $5\mathrm{.}285\backslash \backslash$

$\backslash$hline $7$ & & & $8\mathrm{.}93$ & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}888\backslash \backslash$

$\backslash$hline $8$ & & & $4\mathrm{.}46$ & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}522\backslash \backslash$

$\backslash$hline $9$ & & & & $6\mathrm{.}56$ & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $10$ & & & & $6\mathrm{.}55$ & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $11$ & & & & $3\mathrm{.}28$ & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $12$ & & & & & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $13$ & & & & & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $14$ & & & & & $5\mathrm{.}90$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $15$ & & & & & $5\mathrm{.}91$ & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $16$ & & & & & $2\mathrm{.}95$ & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $17$ & & & & & & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $18$ & & & & & & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $19$ & & & & & & $4\mathrm{.}462\backslash \backslash$

$\backslash$hline $20$ & & & & & & $4\mathrm{.}461\backslash \backslash$

$\backslash$hline $21$ & & & & & & $\backslash \backslash$

$\backslash$hline

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