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Margaret purchased a used pickup truck at a cost of $12,400, with sales tax of $600, to use in her floral business. She purchased the
Margaret purchased a used pickup truck at a cost of $12,400, with sales tax of $600, to use in her floral business. She purchased the pickup (five-year property) and placed it in service on June 1 of the current tax year.
Assuming Margaret opts out of bonus depreciation, using MACRS, what is the first-year cost recovery deduction that Margaret can claim?
If the Recovery Year Is: | And the Recovery Period Is: | |||||
---|---|---|---|---|---|---|
3-Years | 5-Year | 7-Year | 10-Year | 15-Year | 20-Year | |
The Depreciation Rate Is: | ||||||
1 | 33.33 | 20.00 | 14.29 | 10.00 | 5.00 | 3.750 |
2 | 44.45 | 32.00 | 24.49 | 18.00 | 9.50 | 7.219 |
3 | 14.81 | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 |
4 | 7.41 | 11.52 | 12.49 | 11.52 | 7.70 | 6.177 |
5 | 11.52 | 8.93 | 9.22 | 6.93 | 5.713 | |
6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |
7 | 8.93 | 6.55 | 5.90 | 4.888 | ||
8 | 4.46 | 6.55 | 5.90 | 4.522 | ||
9 | 6.56 | 5.91 | 4.462 | |||
10 | 6.55 | 5.90 | 4.461 | |||
11 | 3.28 | 5.91 | 4.462 | |||
12 | 5.90 | 4.461 | ||||
13 | 5.91 | 4.462 | ||||
14 | 5.90 | 4.461 | ||||
15 | 5.91 | 4.462 | ||||
16 | 2.95 | 4.461 | ||||
17 | 4.462 | |||||
18 | 4.461 | |||||
19 | 4.462 | |||||
20 | 4.461 | |||||
21 | 2.231 |
A)
$2,600
B)
$1,240
C)
$1,300
D)
$5,200
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