Problem 8-43 (LO. 2, 3, 4) On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024. Section § 179 expense MACRS cost recovery Total deduction 28,900 X 6,620 X 35,520 X b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 90,900 X Feedback Check My Work The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs. Problem 8-43 (LO. 2, 3, 4) On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024. Section § 179 expense MACRS cost recovery Total deduction 25,900 X 7,220 X 33,120 X b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 62,000 X Feedback Check My Work The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs.
Problem 8-43 (LO. 2, 3, 4) On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024. Section § 179 expense MACRS cost recovery Total deduction 28,900 X 6,620 X 35,520 X b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 90,900 X Feedback Check My Work The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs. Problem 8-43 (LO. 2, 3, 4) On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024. Section § 179 expense MACRS cost recovery Total deduction 25,900 X 7,220 X 33,120 X b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation? 62,000 X Feedback Check My Work The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 8-43 (LO. 2, 3, 4)
On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024.
Section § 179 expense
MACRS cost recovery
Total deduction
28,900 X
6,620 X
35,520 X
b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
90,900 X
Feedback
Check My Work
The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on
passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded
what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs.
Transcribed Image Text:Problem 8-43 (LO. 2, 3, 4)
On March 15, 2024, Helen purchased and placed in service a new Acura MDX. 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 2024.
Section § 179 expense
MACRS cost recovery
Total deduction
25,900 X
7,220 X
33,120 X
b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
62,000 X
Feedback
Check My Work
The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on
passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far exceeded
what was needed for their business use. However, there are different rules for vehicles with a GVW of more than 6,000 lbs.
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