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On May 12, 2021, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion
On May 12, 2021, Nelson Incorporated 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 2021 to 2024 : Required: a. Compute Nelson's depreciation deduction with respect to the automobiles for 2021 and 2022 assuming the automobiles were Mir Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2021 and 2022 assuming the automobiles were Cadillacs costing $57,000 each. Complete this question by entering your answers in the tabs below. Compute Nelson's depreciation deduction with respect to the automobiles for 2021 and 2022 assuming the automobiles were Cadillacs costing $57,000 each
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