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wo years ago, Bethesda Corporation bought a delivery truck for $30,000 (not subject to the luxury auto depreciation limits). Bethesda Ised MACRS 200 percent declining
wo years ago, Bethesda Corporation bought a delivery truck for $30,000 (not subject to the luxury auto depreciation limits). Bethesda Ised MACRS 200 percent declining balance and the half-year convention to recover the cost of the truck, but it did not elect $179 expensing and opted out of bonus depreciation. Answer the questions for the following alternative scenarios. Use MACRS Table. Note: Do not round percentages used for calculations. Loss amounts should be indicated by a minus sign. Leave no answer blank. inter zero if applicable. Required: 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 ? . Assume that Bethesda claimed $18,500 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? :. Assume that Bethesda claimed $18,500 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? Table 1 MACRS Half-Year Convention
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