What is DLW’s year 1 cost recovery for each asset
DLW Corporation acquired and placed in service the following assets during the year:
Asset Date Acquired Cost Basis
Computer equipment 2/17 $10,000
Furniture 5/12 $17,000
Commercial building 11/1 $270,000
Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions:
a. What is DLW’s year 1 cost recovery for each asset?
b. What is DLW’s year 3 cost recovery for each asset if DLW sells all of these assets on 1/23 of year 3?
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