gone tomorrow. There is an auction (Option 2) scheduled for October 5 where Parley believes he can get a similar truck for $21,500, but there is also a $500 auction fee. Parley makes no other asset acquisitions during the year. a) Which option allows Parley to generate more depreciation deductions this year (the vehicles are not considered to be luxury autos)? b) Assume the original facts, except that the delivery van was placed in service one day earlier on March 31 rather than April 1. Which option generates more depre- ciation deduction? LO 10-2 50.) Way Corporation disposed of the following tangible personal property assets in the 1 current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2018 depreciation deduction (ignore $179 expense and bonus depre- ciation for this problem) Asset Date Acquired Date Sold Convention Original Basis 7/15/18 3/15/18 3/13/18 HY MQ HY MQ HY $55,000 72,000 20,000 270,000 80,000 5/12/14 3/23/15 Furniture (7-year) Machinery (7-year) Delivery truck (5-yea) Machinery (7-year) Computer (5-year) 12/15/18 "Used 100 percent for business. LO 10-2 51. On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,200,000; $300,000 was allocated to the basis of the land and the remaining $900,000 was allocated to the basis of the building. a) Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3