Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2015. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,080 and an estimated useful life of 5 years. Assume half-year convention for tax.

c. Calculate the amount of depreciation for 2015, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables. $

d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2015 including bonus depreciation and the election to expense that Mike could deduct under the following assumptions. Assume 2014 Section 179 limits are extended: $ Assume existing 2015 Section 179 limits remain in place: $

James purchased office equipment for his business. The equipment has a depreciable basis of $14,000 and was put in service on June 1, 2015. James decides to elect straight-line depreciation under MACRS for the asset over the minimum number of years (7 years), and does not use bonus depreciation or make the election to expense. What is the amount of his depreciation deduction for the equipment for the 2015 tax year? Round to the nearest dollar.

Click here to view the applicable depreciation table.

a. $500

b. $1,000

c. $2,000

d. $0

e. None of these choices are correct.

An asset (not an automobile) put in service in June 2015 has a depreciable basis of $35,000 and a recovery period of 5 years. Assuming half-year convention, no bonus depreciation, and no election to expense is made, what is the maximum amount of cost that can be deducted in 2015?

Click here to view the applicable depreciation table.

a. $3,500

b. $5,833

c. $7,000

d. $35,000

e. None of these choices are correct.