Determine the MACRS Cost Recovery Deductions for 2018 and 2019

Essay

Determine the MACRS cost recovery deductions for 2018 and 2019 on the following assets that were purchased for use in a farming business on July 15, 2018. The taxpayer does not wish to use the Section 179 election and elects out of bonus depreciation.
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$$\begin{array} { l r } \text { Assets } & \text { Cost } \\\text { Breeding hogs } & \$ 20,000 \\\text { Dairy cattle } & 20,000 \\\text { Tractor } & 20,000\end{array}$$
a.Breeding hogs depreciation:?Total 2018 Breeding hogs Cost Recovery Deduction (show your calculations)Total 2019 Breeding hogs Cost Recovery Deduction (show your calculations)
b.Dairy cattle depreciation:?Total 2018 Dairy Cattle Cost Recovery Deduction (show your calculations)Total 2019 Dairy Cattle Cost Recovery Deduction (show your calculations)
c.Tractor depreciation:?Total 2018 Tractor Cost Recovery Deduction (show your calculations)Total 2019 Tractor Cost Recovery Deduction (show your calculations)? d. Assume the B reeding hogs are sold for $\$ 25,000$ on February 1, 2020. Determine the adjusted basis of the hogs as of the sale date and the realized gain (loss) on the sale. Show your calculations.
Adjusted basis $\quad$ $\quad$ $\quad$$\underline{\quad\quad}$
Realized gain (loss) $\quad$ $\quad$$\underline{\quad\quad}$