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Problem 10-64 (LO 10-2, LO 10-3 ) (Static) Acom Construction (calendar yearend C corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record Income and would like to maximize its cost recovery deduction for the current year(Use MACRS Table 1. Table 2. Table 3. Table 4, and Table ) Note: Round your answer to the nearest whole dollar amount Acorn provided you with the following Information: Asset New equipment and tools Used light-duty trucks Used machinery Total Placed in Service August 20 October 17 November 3,800,000 2,000,000 1,525,000 7,325,000 The used assets had been contributed to the business by its owner in a taxdeferred transaction two years ago. What is Acom's maximum cost recovery deduction in the current year?

TABIE 3 Residential Rental Property Mid Moath Convention Straight Line -27.5 Years \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Meach Preperty Placed in Service } \\ \hline & Moath 1 & Mesili 2 & Menth 3 & Sosth 4 & Maath 5 & Masth 6 & Meath? & Mouth & Month 9 & Mesth 10 & Meath II & Moath 12 \\ \hline Year I & 104246 & 2764 & 2313% & 2245 & 19846 & 1.720% & 1.45546 & 1190% & 09264 & 0.661% & 0397% & 91324 \\ \hline Vear 27 & & 3173 & 3.175 & 3173 & 3.175 & 1175 & 3175 & 3173 & 3175 & 3175 & 3.175 & 3175 \\ \hline Year 5 & 3173 & & 3173 & 3174 & 3.175 & 3.174 & 3175 & 3173 & 3175 & 3175 & 3.173 & 3.175 \\ \hline Yrar 9 & 3174 & 3125 & 3174 & 3175 & 3174 & 3175 & 1.174 & 3179 & 3.174 & 3.175 & 3174 & 3175 \\ \hline Vist 10 & 3175 & 3174 & 3175 & 3174 & 3175 & 3.174 & 7175 & 3174 & 3.175 & 3.174 & 3.175 & 3174 \\ \hline Vear II & 3174 & 3175 & 317 & 3175 & 3174 & 3175 & 3174 & 3.173 & 3.174 & 3.175 & 3174 & 3175 \\ \hline Year 12 & H15 & 3174 & 3175 & 3.174 & 3.175 & 3174 & 3175 & 3174 & 3175 & 3,174 & 3.175 & 3124 \\ \hline Year 13 & 3176 & 3175 & 3174 & 3175 & 3174 & & 3.174 & 3175 & 3174 & 3175 & 3.174 & 3175 \\ \hline Viar 14 & 3175 & 3124 & 3175 & 3174 & 3175 & 3.174 & 3175 & 3174 & 3175 & 3.174 & 3175 & 3174 \\ \hline Vhar 15 & 3174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 & 3.173 & 3174 & 3175 & 3174 & 3175 \\ \hline Vrar 16 & 3.175 & 3+3 & 3125 & 3174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3.174 \\ \hline Var 17 & 3174 & 3175 & 3124 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 & 3173 & 3114 & 3175 \\ \hline Yrat Is & 3175 & 3.174 & 3175 & 3174 & 3173 & 3174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 \\ \hline Wear 19 & 3174 & 3175 & 3174 & 3.175 & 3174 & 3175 & 3174 & 3135 & 3174 & 3175 & 3174 & 3175 \\ \hline Year 20 & 3175 & 3174 & 3175 & 3.174 & 3.175 & 3174 & 3175 & 3174 & 3173 & 3174 & 3175 & 1174 \\ \hline Vear 21 & 3174 & -3.175 & 3174 & 3175 & 3.174 & 317 & 3174 & 3173 & 3174 & 3175 & 3174 & 3.175 \\ \hline Vear 22 & 3175 & 377 & 3173 & 3174 & 3175 & 314 & 3175 & 3174 & 3173 & 3124 & 3175 & 3.174 \\ \hline Vrar 23 & 3174 & 3175 & 3.124 & 3.175 & 3174 & 3175 & 1174 & 3115 & 3.174 & 3173 & 3174 & \\ \hline Year 24 & 3175 & 3174 & 3173 & 3174 & 3175 & 3.174 & 3173 & 3174 & 3175 & 3174 & 3175 & 3174 \\ \hline Vear 25 & 3174 & 3155 & 3.174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 & 3.175 & 1174 & 3.173 \\ \hline Year 26 & 3175 & 3174 & 3.173 & 3174 & 3175 & 3174 & 3173 & 3194 & 3125 & 3174 & 3175 & 3174 \\ \hline Year 27 & 3174 & 317 & 3174 & 3173 & 3174 & 3173 & 317 & 1175 & 1174 & 3175 & 3174 & 3175 \\ \hline Year 25 & 3173 & 3174 & 3175 & 3174 & 3175 & 3174 & 3175 & 3174 & 1175 & 3174 & 3.175 & 3.174 \\ \hline Year 29 & 3174 & 3175 & 3174 & 3173 & 3174 & 3175 & 3174 & 3175 & 317 & 3175 & 3174 & 3175 \\ \hline Yrar 30 & 3113 & 3174 & 3175 & 3174 & 3173 & 3111 & 3175 & 3174 & 3175 & 1174 & 3175 & 3124 \\ \hline Vrar 31 & 317 & 3175 & 3174 & 3.175 & 3174 & 3.175 & 3174 & 3173 & 3174 & 3175 & 1174 & 3175 \\ \hline bear 12 & 1720 & 1984 & 2247 & 2513 & 2.77 & 3042 & 3175 & 3174 & 1175 & 3174 & 3175 & 3174 \\ \hline Vear 3 & & & & & & & 0132 & 0.997 & 2661 & 0926 & 1190 & 1453 \\ \hline \end{tabular} Table 1 MACRS Half-Year Convention \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ Meath Freperty Maced in Service } \\ \hline & Meath 1 & Mesik2 & Menth 3 & Meath 4 & Meath 5 & Menilh 6 & Meath 7 & Mealks & Meath 9 & Mesth 10 & Maath II & Mesth 12 \\ \hline Vear 1 & 2465 & 22476 & 2039% & & 1.0054 & 13914 & 117796 & 0063% & & 0535% & 032146 & 01074 \\ \hline Vear 2-39 & 2564 & 2564 & 2564 & 2464 & 2564 & 2564 & 2564 & 2564 & 2564 & 2564 & 2364 & 2561 \\ \hline Wrar 40 & 010% & 0321 & 0535 & 076 & 0961 & 117 & & 1605 & 1819 & 2013 & 2207 & 2461 \\ \hline \end{tabular} TABIE. 2c MACRS Mid-Quarter Convention: For property placed in service during the thied quarter Acorn Construction (calendar-year-end C corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Iable 1, Table 2. Table 3, Table 4, and Iable 5.) Note: Round your answer to the nearest whole dollar amount. Acorn provided you with the following information: The used assets had been contributed to the business by its owner in a tax-deferred transaction two years ago. o. What is Acorn's maximum cost recovery deduction in the current year? \begin{tabular}{|l|l|l|} \hline Year 4 & 11.37 & 11.97 \\ \hline Year 5 & 11.37 & 8.87 \\ \hline Year 6 & 4.26 & 8.87 \\ \hline Year 7 & & 8.87 \\ \hline Year 8 & & 3.34 \\ \hline \end{tabular} TABLE 2C MACRS Mid Quarter Coavention: For property placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5 -Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 958 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular}

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