Brookshire Brothers Holding, Inc. and Subsidiaries - Page 10

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          Pub. L. 97-34, 95 Stat. 172, which enacted the accelerated cost             
          recovery system (ACRS).  Then, as part of the Tax Reform Act of             
          1986, Pub. L. 99-514, secs. 201, 203, 100 Stat. 2122-2123, 2143,            
          Congress replaced ACRS with a modified accelerated cost recovery            
          system (MACRS), effective generally for property placed in                  
          service after December 31, 1986, and section 168 was amended                
               Under MACRS, assets are placed into 1 of 10 classes.  See              
          sec. 168(c), (e).  Classifications are assigned either according            
          to class life or, for certain types of property, by the nature of           
          the asset.  See id.  The classification of an item under MACRS              
          determines two critical elements in calculating the allowable               
          depreciation:  (1) The applicable depreciation method (200                  
          percent declining balance, later switching to straight line; 150            
          percent declining balance, later switching to straight line; or             
          straight line), and (2) the applicable recovery period (the                 
          period over which depreciation deductions are taken).  See sec.             
          168(a), (b), and (c).  As pertinent here, two of the available              
          MACRS classifications are 15-year property and nonresidential               
          real property, which differ both in the required depreciation               
          method and in the mandated recovery period.  See id.                        
          II.  Contentions of the Parties                                             
               The parties in this matter do not dispute, and have                    
          stipulated, that petitioner’s gas stations are assets of a nature           

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