Question
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
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.
Click here to access the depreciation tables.
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. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started