Reference no: EM131786778

DEPRECIATION ASSIGNMENT

Polo Products manufactures truck and bus components. In year 1 it acquires and puts into service the following:

ASSET                                DATE               COST

UsedPress                           Feb. 15            $400,000        

Special Tools   (new)            Feb. 15            $275,000

Computer Equipment (new)   July 1              $600,000        

New Machinery                     July 1              $925,000

You may find the following information helpful:

DESCRIPTION                                                CLASS LIFE          GDS       ADS

Equipment - Manufacture of Motor Vehicles            12                   7          12

Special Tooling - Manufacture of Motor Vehicles       3                    3          3

Computer Hardware                                             6                    5          5

Determine each asset's entire depreciation schedule using:

1. MACRS and claiming bonus depreciation on the computer equipment, and the New Machinery's date is October 15, Year 1.

For purposes of this assignment assume 2015 is year 1.  For the assignment, do not worry about actual calendar years, just identify year 1, year 2, etc.

While not required, use of Excel or other spreadsheet software is recommended for this assignment.