Answer question b.

Problem 8-47 (LO. 2, 3, 4)

On March 15, 2018, Helen purchased and placed in service a new Escalade. The purchase price was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business.

If required, round your answers to the nearest dollar.

Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1: $10,000; year 2: $16,000.

a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2018.

Section 179 expense	$25,000
MACRS cost recovery	$7,400
Total deduction	$32,400

b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? $