On January 1, 2016, Iowa Company purchased a delivery truck for $32,000. The van was estimated to have a 5-year useful life or 100,000 miles. Salvage value was estimated at $2,000. The van was driven 25,000 miles in 2016 and 22,000 miles in 2017. For income tax purposes, Iowa Company uses the modified accelerated cost recovery system (MACRS); table shown below:

Year	5-Year Property, %
1	20.00
2	32.00
3	19.20
4	11.52
5	11.52
6	5.76

What is the maximum amount of depreciation expense for income tax purposes that Iowa Company will record for 2016 and 2017 assuming the truck is 5-year property?

A) $4,287 in 2016; $7,347 in 2017

B) $4,573 in 2016; $7,837 in 2017

C) $6,400 in 2016; $10,240 in 2017

D) $6,000 in 2016; $9,600 in 201

Answer rating: 100% (QA)

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