On March 15, 2023, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2023. Section § 179 expense MACRS cost recovery Total deduction 28,900 6,620 35,520 b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 62.000 X
On March 15, 2023, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2023. Section § 179 expense MACRS cost recovery Total deduction 28,900 6,620 35,520 b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 62.000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On March 15, 2023, Helen purchased and placed in service a new Escalade. The purchase
price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The
vehicle was used 100% for business.
If required, round your answers to the nearest dollar.
Click here to access the depreciation table to use for this problem.
a. Assuming that Helen does not use additional first-year depreciation, calculate the total
depreciation deduction that she can take on the vehicle for 2023.
Section § 179 expense
MACRS cost recovery
Total deduction
28,900 ✔
6,620 V
$
35,520
b. What is her total depreciation deduction if Helen decided to take additional first-year
depreciation?
62,000 X
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