Parley needs a new truck to help him expand Parleys Plumbing Palace. Business has been booming and Parley would like to accelerate his tax deductions as much as possible (ignore 179 expense and bonus depreciation for this problem). On April 1, Parley purchased a new delivery van for $25,000. (UseMACRSTable 1andTable 2.)

Option 1: It is now September 26 and Parley, already in need of another vehicle, has found a deal on buying a truck for $22,000 (all fees included). The dealer tells him if he doesnt buy the truck, it will be gone tomorrow.

Option 2: There is an auction scheduled for October 5 where Parley believes he can get a similar truck for $21,500, but there is also a $500 auction fee.

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