At the beginning of the year, Dee began a calendar-year business and placed in service...
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Accounting
At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year:
| Asset | Date Acquired | Cost Basis |
| Computer equipment (5 year) | 3/23 | $5,000 |
| Furniture (7 year) | 5/12 | $7,000 |
| Pickup truck (5 year) | 11/15 | $10,000 |
| Commercial building (39 year) | 10/11 | $270,000 |
Assuming Dee does not elect 179 expensing or bonus depreciation, determine Dees year 1 cost recovery for each asset.
[Hint: (1) Commercial building is a nonresidential real property with 39 years of recovery period. Assume the depreciation percentage for the year is 0.535%.
(2) Assume that Poplock chooses double declining (DB) method.
(3) Note that Poplock uses the mid-quarter [Do you why?] convention for personalty (e.g., computer equipment, furniture, truck) and mid-month convention for realty (e.g., building).]
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