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MACRS Depreciation Spreadsheet

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Module $3-$ Written Assignment $2$

Tom purchases a new manufacturing machine for his business on April $1,2015$ for $$27,000.$ The machine is depreciated under MACRS with a $7-$year recovery period. This maachine was his only asset acquisition of this year. Thomas elects to expense $$25,000$ of the cost under Section $179.$

a$.$ What is Tom's total deprciation deduction for the machine in $2015.$

b$.$ Tom decides to sell his machine on October $5,2017$ for $$10,000.$ Compute Tom's depreciation deduction for $2015$ through $2017.$ The adjusted basis of the machine on October $5,2017,$ and the gain or loss on the sale. $($HINT: $2017$ is only $\frac{1}{2}$ year$).$

Refer to the table on the right to calculate the MACRS depreciation