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Evergreen Corporation (calendar year end) acquired the following assets during the current year (ignore A?§179 expense and bonus depreciation for this problem): (Use MACRS Table 1 and Table 2.) |
| Asset | Placed in Service Date | Original Basis |
| Machinery | October 25 | $ 70,000 |
| Computer equipment | February 3 | 10,000 |
| Used delivery truck* | August 17 | 23,000 |
| Furniture | April 22 | 150,000 |
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*The delivery truck is not a luxury automobile. |
| a. |
What is the allowable MACRS depreciation on Evergreen’s property in the current year? |
| b. |
What is the allowable MACRS depreciation on Evergreen’s property in the current year if the machinery had a basis of $170,000 rather than $70,000? |