Chapter 5, Problem 25P

In 2018, your company purchased a front-end loader for $150,000, a dump truck for $85,000, and a dumping trailer for the dump truck for $38,000. The front-end loader was placed in service in April and the dump truck and dumping trailer were placed in service in July. In 2019, your company purchased three side-dump trailers for $65,000 each and three tractors to pull the side-dump trailers for $68,000 each, which were placed in service in May. In December of 2020, your company purchased a dump truck for $87,000. Determine the depreciation allowed for tax purposes for the 2020 tax year. The tax year runs from January to December. Ignore all Section 179 deductions and bonus depreciation allowances. Hint: The tractors have a different recovery period than the rest of the equipment.