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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 | |
- Compute Nelsons depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Mini Coopers costing $14,300 each.
- Compute Nelsons depreciation deduction with respect to the automobiles for 2018 and 2019 assuming the automobiles were Cadillacs costing $57,000 each.
Just nee the last one that is incorrect. Thank you!
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 86,133Step by Step Solution
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