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FOR THIS PROBLEM CAN YOU SHOW IT VERY NEATLY AND CLEARLY WRITTEN. PLEASE SHOW WORK IF POSSIBLE Phil owns a ranch business and uses four-wheelers
FOR THIS PROBLEM CAN YOU SHOW IT VERY NEATLY AND CLEARLY WRITTEN. PLEASE SHOW WORK IF POSSIBLE
Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 906 miles on the four-wheeler that he bought on January 15 for $6,600. Of the miles driven, only 236 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation). Depreciation deduction b. Calculate the allowable depreciation for year 2 if total miles were 1,465 and personal-use miles were 680 (ignore the $179 expense and bonus depreciation). Depreciation deduction
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