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Oak Corporation purchased a heavy-duty truck(not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on June 1, 2021 for
Oak Corporation purchased a heavy-duty truck(not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on June 1, 2021 for use in its business. The truck with a cost basis of $ 22,000 has a 5 year life and a salvage value of $ 4000. How much depreciation should be taken on the truck for the 2021 calendar tax year if using the conventional(for financial statement purposes) straight-line depreciation method? Question options: a) $ 1,800 b) $ 2,100 c) $ 2,567 d) $ 3,600 e) None of the above
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