Required information

$[$The following information applies to the questions displayed below.$]$

Padma needs a new truck to help her expand Padma's Plumbing Palace. Business has been booming and Padma

would like to accelerate her tax deductions as much as possible $($ignore $$179$ expense and bonus depreciation for

this problem$).$ On April $1,$ Padma purchased a new delivery van for $$25,000.$

Option $1$: It is now September $26$ and Padma, already in need of another vehicle, has found a deal on buying a truck

for $$22,000($all fees included$).$ The dealer tells her if she doesn't buy the truck, it will be gone tomorrow.

Option $2$: There is an auction scheduled for October $5$ where Padma believes she can get a similar truck for $$21,500,$

but there is also a $$500$ auction fee. Padma makes no other asset acquisitions during the year.

$($Use MACRS Table $1$ and Table $2.)$