help please 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.Click here to access the depreciation tables.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.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.c. Calculate the amount of depreciation for 2019, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables. TABLE 8.2Accelerated Depreciation for Personal Property Assuming Half-Year Convention(For Property Placed in Service after December 31, 1986)RecoveryYear5-Year(20006 DB)3-Year7-Year10-Year15-Year20-Year(200%% DB)(2009% DB)(200% DB)(150% DB)(150% DB)133.3320.0014.2910.005.003.75044.4532.00024.4918.009.507.219314.81 *19.2017.4914.408.556.67747.4111.52 *12.4911.527.706.177511.528.93 *9.226.935.7135.768.927.376.235.28578.936.55 *5.90 *4.8884.466.555.904.52296.565.914.462 *106.555.904.461113.285.914.462125.904.461135.914.462145.904.461155.914.462162.954.461174.462184.461194.462204.461212.231*Switch to straight-line depreciation.TABLE 8.3Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention*(For Property Placed in Service after December 31, 1986)OtherLastRecovery96 FirstRecovery YearsRecovery YearsPeriodRecovery YearYearsYear3-year16.672-333.33416.675-year10.002-520.0010.007-year7.142-714.297.1410-year5.002-1010.00115.0015-year3.332-156.67163.3320-year2.502-205.00212.50*The official table contains a separate row for each year. For ease of presentation, certain yearsare grouped together in this table. In some instances, this will cause a difference of 0.01 percentfor the last digit when compared with the official table.

Depreciation is an amortization of the asset's cost over its useful life and which will be debited…

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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.

Click here to access the depreciation tables.

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.

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.

c. Calculate the amount of depreciation for 2019, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.

TABLE 8.2
Accelerated Depreciation for Personal Property Assuming Half-Year Convention
(For Property Placed in Service after December 31, 1986)
Recovery
Year
5-Year
(20006 DB)
3-Year
7-Year
10-Year
15-Year
20-Year
(200%% DB)
(2009% DB)
(200% DB)
(150% DB)
(150% DB)
1
33.33
20.00
14.29
10.00
5.00
3.750
44.45
32.000
24.49
18.00
9.50
7.219
3
14.81 *
19.20
17.49
14.40
8.55
6.677
4
7.41
11.52 *
12.49
11.52
7.70
6.177
5
11.52
8.93 *
9.22
6.93
5.713
5.76
8.92
7.37
6.23
5.285
7
8.93
6.55 *
5.90 *
4.888
4.46
6.55
5.90
4.522
9
6.56
5.91
4.462 *
10
6.55
5.90
4.461
11
3.28
5.91
4.462
12
5.90
4.461
13
5.91
4.462
14
5.90
4.461
15
5.91
4.462
16
2.95
4.461
17
4.462
18
4.461
19
4.462
20
4.461
21
2.231
*Switch to straight-line depreciation.
TABLE 8.3
Straight-Line Depreciation for Personal Property, Assuming Half-Year Convention*
(For Property Placed in Service after December 31, 1986)
Other
Last
Recovery
96 First
Recovery Years
Recovery Years
Period
Recovery Year
Years
Year
3-year
16.67
2-3
33.33
4
16.67
5-year
10.00
2-5
20.00
10.00
7-year
7.14
2-7
14.29
7.14
10-year
5.00
2-10
10.00
11
5.00
15-year
3.33
2-15
6.67
16
3.33
20-year
2.50
2-20
5.00
21
2.50
*The official table contains a separate row for each year. For ease of presentation, certain years
are grouped together in this table. In some instances, this will cause a difference of 0.01 percent
for the last digit when compared with the official table.

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