On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2022 to 2025: 2022 2023 2024 2025 and subsequent years $ 11, 200 18,000 10,800 6,460 Required: a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Cadillacs costing $60,000 each.
On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179 election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2022 to 2025: 2022 2023 2024 2025 and subsequent years $ 11, 200 18,000 10,800 6,460 Required: a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini Coopers costing $14,300 each. b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Cadillacs costing $60,000 each.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 44P
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On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179
election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year
convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for
annual depreciation deduction for year 2022 to 2025:
2022
2023
2024
2025 and subsequent years
$ 11, 200
18,000
10,800
6,460
Required:
a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini
Coopers costing $14,300 each.
b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were
Cadillacs costing $60,000 each.
Complete this question by entering your answers in the tabs below.
Required A Required B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4461db-e6fd-4c17-80b8-617bf6da40f7%2Fc6ac6d5a-3ef0-4b30-a526-702295e8e9b6%2Fv9fdlmd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
On May 12, 2022, Nelson Incorporated purchased eight passenger automobiles for its business. Nelson did not make a Section 179
election to expense any portion of the cost of the automobiles, which are five-year recovery property subject to the half-year
convention. Assume there is no bonus depreciation or Section 179 deduction. Use Table 7-1 and Table 7-2. Use the below table for
annual depreciation deduction for year 2022 to 2025:
2022
2023
2024
2025 and subsequent years
$ 11, 200
18,000
10,800
6,460
Required:
a. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were Mini
Coopers costing $14,300 each.
b. Compute Nelson's depreciation deduction with respect to the automobiles for 2022 and 2023 assuming the automobiles were
Cadillacs costing $60,000 each.
Complete this question by entering your answers in the tabs below.
Required A Required B
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