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On May 12, 2018, Nelson Inc. purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion

On May 12, 2018, Nelson Inc. purchased eight passenger automobiles for 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. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2018 to 2021:

2018 $ 10,000
2019 16,000
2020 8,600
2021 and subsequent years 5,760

  1. Compute Nelsons depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Mini Coopers costing $14,300 each.
  2. Compute Nelsons depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Cadillacs costing $57,000 each.

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On May 12, 2018, Nelson Inc. purchased eight passenger automobiles for 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. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2018 to 2021: 2018 2019 2020 $10,000 16,000 8,600 5,760 2021 and subsequent years a. Compute Nelson's depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Mini Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Cadillacs costing $57,000 each. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute Nelson's depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Cadillacs costing $57,000 each. Required ARequired B Compute Nelson's depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Cadillacs costing $57,000 each. Depreciation Deduction Year 2018 S 80,000 2019 S 86,133

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