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Twoyears ago, Bothesda Corporation bought a dellvery truck for $30,000 (not subject to the luxury auto depreciation Imills). Bethesda used MACRS 200 percent decining balance

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Twoyears ago, Bothesda Corporation bought a dellvery truck for $30,000 (not subject to the luxury auto depreciation Imills). Bethesda used MACRS 200 percent decining balance and the half-year convention torecover the cost of the tuck, but it did not elect $179 expensing and opted out of bonus depreciation. Answer the questions for the following alternative scenarios. 1. a. Assuming Bethesda used the truck until it sold it in March of year 3, what depreciation expense can it claim on the truck for years 1 through 3 ? b. Assume that Bethesda claimed $18,480 of depreciation expense on the truck before it sold it in year 3 . What are the amount and character of the gain or loss if Bethesda sold the truck in year 3 for $17,000 and incurred $2,000 of selling expenses on the sale? c. Assume that Bethesda claimed $18,480 of depreciation expense on the truck before it sold it in year 3 . What are the amount and character of the gain or loss if Bethesda sold the truck in year 3 for $35,000 and incurred $3,000 of selling expenses on the sale

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