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On May 12, 2015, Nelson Inc. purchased eight used-passenger automobiles for use in its business. Nelson did not make a Section 179 election to expense
On May 12, 2015, Nelson Inc. purchased eight used-passenger automobiles for use in its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Compute Nelson's depreciation deduction with respect to the automobiles for 2015 and 2016 assuming: Use Table 1-2. Use the below table for annual depreciation deduction for year 2015 to 2018: a. The automobiles were Mini Coopers costing $14, 300 each b. The automobiles were Buck Lucernes costing $27,000 each. On May 12, 2015, Nelson Inc. purchased eight used-passenger automobiles for use in its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Compute Nelson's depreciation deduction with respect to the automobiles for 2015 and 2016 assuming: Use Table 1-2. Use the below table for annual depreciation deduction for year 2015 to 2018: a. The automobiles were Mini Coopers costing $14, 300 each b. The automobiles were Buck Lucernes costing $27,000 each
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