ACRS Table Example

The ACRS cost recovery calculations for a $25,000 drill press and a $10,000 light duty truck, both purchased in September 1982, are shown below. The drill press is classified as 5-year property, the truck as 3-year property.

Depreciation for 1982
25% of $10,000 (truck)	$2,500
15% of $25,000 (drill press)	3,750
Total 1982	$6,250

Depreciation for 1983
38% of $10,000 (truck)	$3,800
22% of $25,000 (drill press)	5,500
Total 1983	$9,300

Depreciation for 1984
37% of $10,000 (truck)	$3,700
21% of $25,000 (drill press)	5,250
Total 1984	$8,950

Depreciation for 1985
21% of $25,000 (drill press)	$5,250

Depreciation for 1986
21% of $25,000 (drill press)	$5,250

The half-year convention allowed a half year of depreciation in 1982, although the two pieces of equipment were only in service for 4 months (September to December). No extra calculations were needed to handle the half-year convention in the acquisition year; it is built into the tables.