Determine the class life, MACRS recovery period, and ADS recovery period of each of the following assets acquired for a sports bar:
- Pool table
- Safe
- Photocopying machines
Pickup truck
Electronic video games
Brewing tanks for the bar’s microbrewery
Four-year-old racehorse named GofortheBrew purchased by the bar owners and raced locally
Point-of-sale computerized cash registers
Determine the class life, MACRS recovery period, and ADS recovery period of each of the following assets acquired for a sports bar:
- Pool table
- Safe
A safe is in asset class 00.11, has a class life of 10 years, MACRS recovery period of 7 years, and ADS recovery period of 10 years.
- Photocopying machines
Photocopiers are in asset class 00.13, have a class life of 6 years, MACRS recovery period of 5 years, and ADS recovery period of 6 years.
- Pickup truck
Pickup trucks are in asset class 00.241, have a class life of 4 years, MACRS recovery period of 5 years, and ADS recovery period of 5 years.
- Electronic video games
Video games do not have a specified asset class. Therefore, the category for personal property with no class life is used. The MACRS recovery period is 7 years, and the ADS recovery period is 12 years.
- Brewing tanks for the bar’s microbrewery
Brewing tanks do not have a specified asset class. Therefore, the category for personal property with no class life is used. The MACRS recovery period is 7 years, and the ADS recovery period is 12 years.
- Four-year-old racehorse named GofortheBrew purchased by the bar owners and raced locally
Four-year-old racehorses are in asset class 01.223, have no class life, MACRS recovery period of 3 years, and ADS recovery period of 12 years.
- Point-of-sale computerized cash registers
Point-of-sale registers are not specifically listed in asset class 00.12. The best choice is probably asset class 00.13 Data Handling Equipment with a class life of 6 years, MACRS recovery period of 5 years, and ADS recovery period of 6 years.
