a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life. $fill in the blank ac0f3efbd00efc6_1 b. Calculate the amount of depreciation for 2019 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense. $fill in the blank ad61d8facfce02b_1 c. Calculate the amount of depreciation for 2019, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables. $fill in the blank a5b249f64f9203a_1 d. 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.
Modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3)
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.
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a. Calculate the amount of depreciation for 2019 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
$fill in the blank ac0f3efbd00efc6_1
b. Calculate the amount of depreciation for 2019 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.
$fill in the blank ad61d8facfce02b_1
c. Calculate the amount of depreciation for 2019, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.
$fill in the blank a5b249f64f9203a_1
d. 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.
$fill in the blank 8657f606c075f8c_1
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