Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on May 1, 2021 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2021 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method? Oa. $4.800 Ob. $400 Oc. $3,200 Od. $2.400 Oe. None of these choices are correct.

Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on May 1, 2021 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2021 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method? Oa. $4.800 Ob. $400 Oc. $3,200 Od. $2.400 Oe. None of these choices are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile
limitations) on May 1, 2021 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery
property. How much depreciation should be taken on the truck for the 2021 calendar tax year using the conventional (for financial accounting purposes)
straight-line depreciation method?
Oa. $4,800
Ob. $400
Oc. $3,200
Od. $2,400
Oe. None of these choices are correct.

Jenny constructed a building for use as a residential rental property. The cost of the building was $164,976, and it was placed in service on August 1,
1999. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2021 for tax purposes?
Oa. $2,250
Ob. $3,000
Oc. $6,547
Od. $6,000
Oe. None of these choices are correct.

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Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on May 1, 2020 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2020 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method? a.$4,800 b.$2,400 c.$3,200 d.$400 e.None of these choices are correct.