1.Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Click here to access the depreciation tables.

a. Calculate the amount of depreciation for 2018 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.

b. Calculate the amount of depreciation for 2016 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.

c. Calculate the amount of depreciation for 2016, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.

d. Calculate the amount of depreciation for 2018 including the election to expenses but no bonus depreciation that Mike coukd deduct. Assume no income limit on the expense election.

2. Give the MACRS depreciation life of the following assets:

a. An Automobile

b. Business furniture

c. A computer

d. Residential real estate

e. Commercial rea estate

f. Land

3. Calculate the following:

a. The first year of depreciation on a residential rental building costing $200,000 purchased June 2, 2018.

b. The second year of depreciation on a computer costing $5,000 purchased in May 2018, using the half-year convention and accelerated depreciation considering any bonus depreciation taken.

c.The first year of depreciation on a computer costing $2,800 purchased in May 2018, using the half-year convention and straight-line depreciation with no bonus depreciation.

d. The third year of depreciation on business furniture costing $8,000 purchased in March 2013, using the half-year convention and accelerated depreciation but no bonus depreciation.

4. On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $2,800. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20 percent of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2018 for the computer, assuming half-year convention and she does not make the election to expense or take bonus depreciation.