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Recovery Period TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 1 2 3 4 5 6 7 8 9 10 11 12 13 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 14 15 16 17 18 19 20 21 At the beginning of its 2020 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/18 5/2/17 9/30/17 Initial Cost $30,750 70,000 58,000 Accumulated Depreciation $11,925 49,840 41,296 Recovery Depreciation Period Convention 7-year Half-year 5-year Half-year 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hirams maximum cost recovery deduction for 2020. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.) 2020 MACRS Depreciation Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools $ 0 Total 2020 cost recovery $ 0 Recovery Period TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 1 2 3 4 5 6 7 8 9 10 11 12 13 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 14 15 16 17 18 19 20 21 At the beginning of its 2020 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/18 5/2/17 9/30/17 Initial Cost $30,750 70,000 58,000 Accumulated Depreciation $11,925 49,840 41,296 Recovery Depreciation Period Convention 7-year Half-year 5-year Half-year 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hirams maximum cost recovery deduction for 2020. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.) 2020 MACRS Depreciation Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools $ 0 Total 2020 cost recovery $ 0

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