Chapter 10 Depreciation: The Mid-quarter Convention Han owns a landscaping business in Denver Colorado. In 2019. Han purchases two new dump trucks for his business. The trucks cost $125,000 each. He places the blue dump truck into service on June 1, 2019. He placed the red dump truck into service on October 8, 2019. Han would like to limit any code section 179 deduct for the year to a single amount of $50,000 in total. He would like to split his elected code section 179 deduction evenly between the two trucks. The trucks are the only assets Han placed in service during the year. In addition, Han has active income in the amount of $1,000,000. What are the tax consequences for Han? 1) The trucks are tangible property and are considered real property or personal property. property (select truck is 2) Han's initial basis in the blue truck is Han's initial basis in the red _. Han's depreciable basis for the blue truck is His depreciable basis for the red truck is _. In addition, % of the property was placed into service during the last quarter of the year, therefore, Han will use the mid- convention. 3) Han's depreciation deduction for the blue truck in 2019 is Han's depreciation deduction for the red truck in 2019 is _ His total cost recovery in 2019 is fall depreciation +179 Deduction). 4) His adjusted basis for the blue truck is adjusted basis for the red truck is _ at the end of the year. His at the end of the year. 5) Han may be able to use his code section 179 deduction to avoid the mid-quarter convention and increase his depreciation deduction by: Chapter 10 Depreciation: The Mid-quarter Convention Han owns a landscaping business in Denver Colorado. In 2019. Han purchases two new dump trucks for his business. The trucks cost $125,000 each. He places the blue dump truck into service on June 1, 2019. He placed the red dump truck into service on October 8, 2019. Han would like to limit any code section 179 deduct for the year to a single amount of $50,000 in total. He would like to split his elected code section 179 deduction evenly between the two trucks. The trucks are the only assets Han placed in service during the year. In addition, Han has active income in the amount of $1,000,000. What are the tax consequences for Han? 1) The trucks are tangible property and are considered real property or personal property. property (select truck is 2) Han's initial basis in the blue truck is Han's initial basis in the red _. Han's depreciable basis for the blue truck is His depreciable basis for the red truck is _. In addition, % of the property was placed into service during the last quarter of the year, therefore, Han will use the mid- convention. 3) Han's depreciation deduction for the blue truck in 2019 is Han's depreciation deduction for the red truck in 2019 is _ His total cost recovery in 2019 is fall depreciation +179 Deduction). 4) His adjusted basis for the blue truck is adjusted basis for the red truck is _ at the end of the year. His at the end of the year. 5) Han may be able to use his code section 179 deduction to avoid the mid-quarter convention and increase his depreciation deduction by