Question
1)Norm purchases a new sports utility vehicle (SUV) on October 12, 2014, for $50,000. The SUV has a gross vehicle weight of 6,200 lbs. It
1)Norm purchases a new sports utility vehicle (SUV) on October 12, 2014, for $50,000. The SUV has a gross vehicle weight of 6,200 lbs. It is used 100% of the time for business and it is the only business asset acquired by Norm during 2014. Compute the maximum deduction with respect to the SUV for 2014. If Congress reenacts additional first-year depreciation for 2014, Norm elects not to take additional first-year depreciation.
2) Ollie owns a personal use car for which he originally paid $42,000. He trades the car in on a sport utility vehicle (SUV), paying the automobile dealer cash of $24,000. If the negotiated price of the SUV is $45,000, what is Ollie's recognized gain or loss and his adjusted basis for the SUV?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started