Problem 8-33 (LO. 2)Debra acquired the following new assets during 2020:DateAssetCostApril 11Furniture$40,000July 28Trucks40,000November 3Computers70,000 Debra does not elect immediate expensing under § 179. She does not claim any available additional first-year depreciation.If required, round your answers to the nearest dollar.Click here to access the depreciation tables to use for this problem.c. The cost recovery deductions for the current year is:Furniture:$fill in the blank 5Trucks:$fill in the blank 6Computers:$fill in the blank 7Exhibit 8.4MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates)For Property Placed in Service after December 31, 1986 (Partial Table)3-YearRecovery YearFirst QuarterSecond QuarterThird QuarterFourth Quarter158.3341.6725.008.33227.7838.8950.0061.115-YearRecovery YearFirst QuarterSecond QuarterThird QuarterFourth Quarter135.0025.0015.005.00226.0030.0034.0038.007-YearRecovery YearFirst QuarterSecond QuarterThird QuarterFourth Quarter125.0017.8510.713.57221.4323.4725.5127.55

MACRS MACRS can be defined as a depreciation system used for taxation. The MACRS depreciation system is used to recover the cost of capital cost.Internal revenue services provide deduction for depreciation under federal income tax.MACRS is the most suitable means to calculate depreciation.Particulars Furniture Trucks Computers Cost $40,000 $40,000 $70,000 MACRS applicable rate 17.85% 15% 5% MACRS cost for recovery( cost *applicable rate) $7140 $6000 $3500 Cost of recovery Amount Furniture $7140 Trucks $6000 Computers $3500 Total $16,640

Answered: Debra acquired the following new assets…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates)

For Property Placed in Service after December 31, 1986 (Partial Table)
3-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	58.33	41.67	25.00	8.33
2	27.78	38.89	50.00	61.11
5-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	35.00	25.00	15.00	5.00
2	26.00	30.00	34.00	38.00
7-Year
Recovery Year	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
1	25.00	17.85	10.71	3.57
2	21.43	23.47	25.51	27.55

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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