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Business, 10.06.2020 06:57 Lexiah

Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2019. 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 $42,000 and an estimated useful life of 5 years. Assume half-year convention for tax. Required:
a. Calculate the amount of depreciation for 2019, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.
b. Assume no income limit on the expense election. Calculate the amount of depreciation for 2019 including the election to expense but no bonus depreciation that Mike could deduct.

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Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on M...

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