Reference no: EM132317457

Question

Katie forms a small manufacturing company. Her company places the following properties into service during the year, on the dates indicated:

Type of property                     Date placed in service      Cost

Business building                         April 6                     $275,000

Furniture                                   June 5                     $57,000

Machinery                                 September 2             $65,000

Computer                                  December 27             $25,000

She chooses she is not doing any Section 179 expense, and also elects not to take bonus depreciation. She uses MACRS depreciation.

Calculate the first year depreciation on the building, and also on the machinery.