On May 12, 2021, Nelson, Inc. purchased eight passenger automobiles for its business. Nelson did not make
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On May 12, 2021, Nelson, Inc. purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Assuming no bonus depreciation or Section 179 deduction, compute Nelson’s depreciation deduction with respect to the automobiles for 2021 and 2022 assuming
a. The automobiles were Mini Coopers costing $14,300 each.
b. The automobiles were Cadillacs costing $57,000 each.
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a The cost basis of each Mini Cooper is 14300 and firstyear MACRS is 2860 20 14300 M...View the full answer
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Related Book For
Principles Of Taxation For Business And Investment Planning 2023
ISBN: 9781264229741
26th Edition
Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick
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