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Show me the steps to solve Mike purchases a new heavy - duty truck ( five - year class recovery property ) for his delivery
Show me the steps to solve Mike purchases a new heavyduty truck fiveyear class recovery property for his delivery service on March No other assets were purchased during the year. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations The truck has a depreciable basis of $ and an estimated useful life of five years. Assume halfyear convention for tax.
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a Calculate the amount of depreciation for using the straightline depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.
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b Calculate the amount of depreciation for including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.
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c Calculate the amount of depreciation for including the election to expense and depreciation that Mike could deduct. Assume no income limit on the expense election.
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