The Glover Corporation purchased $80,000 of equipment on July 1,2016.The equipment is expected to be used in the business for five years and has an estimated salvage value of $11,000.Partial MACRS tables are listed below:
Required: a)Compute the amount of depreciation that is deductible under MACRS for 2016 and 2017 assuming that the equipment is classified as 5-year property.
b)Compute the amount of depreciation that is deductible under MACRS for 2016 and 2017 assuming that the equipment is classified as 7-year property.

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The Answer of The Glover Corporation purchased $80,000 of equipment on July 1,2016.The equipment is expected to be used in the business for five years and has an estimated salvage value of $11,000.Partial MACRS tables are listed below:
Required: a)Compute the amount of depreciation that is deductible under MACRS for 2016 and 2017 assuming that the equipment is classified as 5-year property.
b)Compute the amount of depreciation that is deductible under MACRS for 2016 and 2017 assuming that the equipment is classified as 7-year property.

The Glover Corporation Purchased $80,000 of Equipment on July 1,2016