Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. No other assets were purchased during the year. 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 $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax.

depreciation tables for 2019:

TABLE 8.2

Accelerated Depreciation for Personal Property Assuming Half-Year Convention (For Property Placed in Service after December 31, 1986)

Recovery Year			3-Year (200% DB)			5-Year (200% DB)			7-Year (200% DB)			10-Year (200% DB)			15-Year (150% DB)			20-Year (150% DB)
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

*Switch to straight-line depreciation.

TABLE 8.3

Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention* (For Property Placed in Service after December 31, 1986)

Recovery		% First		Other Recovery Years			Last Recovery Years
Period		Recovery Year		Years	%		Year		%
3-year		16.67		2-3	33.33		4		16.67
5-year		10.00		2-5	20.00		6		10.00
7-year		7.14		2-7	14.29		8		7.14
10-year		5.00		2-10	10.00		11		5.00
15-year		3.33		2-15	6.67		16		3.33
20-year		2.50		2-20	5.00		21		2.50

*The official table contains a separate row for each year. For ease of presentation, certain years are grouped together in this table. In some instances, this will cause a difference of 0.01 percent for the last digit when compared with the official table.

a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life. $....

b. Calculate the amount of depreciation for 2019 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.

$......

c. Calculate the amount of depreciation for 2019, 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 2019 including the election to expense but no bonus depreciation that Mike could deduct.

$......