In June 2008, your company traded-in a used car with a BV of $5,000. The vendor, having

Question:

In June 2008, your company traded-in a used car with a BV of $5,000. The vendor, having accepted the older car as a trade-in, was willing to make a deal and offered to sell you a new car with an MV of $40,000 for $35,000 in cash. Find
a. What GDS property class the new car would fit into?
b. How much depreciation can be deducted each year based on this class life?