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Kuo Corporation Uses the Following Assets in Its Business in 2013

Question 115

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Kuo Corporation uses the following assets in its business in 2013:
 Asset  Date Purchased  Cost  MACRS Life  ADS Life  Building 5122008$400,00039yr40yr Furniture 619201115,0007yr10yr Equipment 6152009 (sold 9-9-13) 10,0007yr10yr Truck 71201030,0005yr5yr Computer 1224201030,0005yr5yr\begin{array} { l l c c c } \text { Asset } & \text { Date Purchased } & \text { Cost } & \text { MACRS Life } & \text { ADS Life } \\\text { Building } & 5 - 12 - 2008 & \$ 400,000 & 39 \mathrm { yr } & 40 \mathrm { yr } \\\text { Furniture } & 6 - 19 - 2011 & 15,000 & 7 \mathrm { yr } & 10 \mathrm { yr } \\\text { Equipment } & 6 - 15 - 2009 \text { (sold 9-9-13) } & 10,000 & 7 \mathrm { yr } & 10 \mathrm { yr } \\\text { Truck } & 7 - 1 - 2010 & 30,000 & 5 \mathrm { yr } & 5 \mathrm { yr } \\\text { Computer } & 12 - 24 - 2010 & 30,000 & 5 \mathrm { yr } & 5 \mathrm { yr }\end{array}
Assume Kuo Corporation does not utilize Sec 179 expense,has not disposed of any asset since 2001,elects out of bonus depreciation,and has never expensed an asset previously.The equipment was sold on 9-9-13 for $4,000.
What is Kuo's 2013 depreciation expense using MACRS and for ADS?
2013 MACRS 2013 ADS Building  Furniture Equipment  Truck  Computer \begin{array}{llcc}& 2013 \text { MACRS }& 2013 \text { ADS } \\ \text {Building } & \underline {\quad\quad\quad\quad\quad\quad } & \underline {\quad\quad\quad\quad\quad\quad } \\ \text { Furniture } & \underline {\quad\quad\quad\quad\quad\quad } & \underline {\quad\quad\quad\quad\quad\quad } \\ \text {Equipment } & \underline {\quad\quad\quad\quad\quad\quad } & \underline {\quad\quad\quad\quad\quad\quad } \\ \text { Truck } & \underline {\quad\quad\quad\quad\quad\quad } & \underline {\quad\quad\quad\quad\quad\quad } \\ \text { Computer } & \underline {\quad\quad\quad\quad\quad\quad } & \underline {\quad\quad\quad\quad\quad\quad } \\\end{array}

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