Cost recovery

Cost recovery

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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