Question: John Johnson is considering acquiring an automobile at the beginning of 2014 that he will use 100% of the time as a taxi. The purchase

John Johnson is considering acquiring an automobile at the beginning of 2014 that he will use 100% of the time as a taxi. The purchase price of the automobile is $35,000. John has heard of cost recovery limits on automobiles and wants to know the maximum amount of the $35,000 he can deduct in the first year.

Write a letter to John in which you present your calculations. Also prepare a memo for the tax files, summarizing your analysis. John's address is 100 Morningside, Clinton, MS 39058.

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Smith Raabe Maloney and Young CPAs 5191 Natorp Boulevard Mason OH 45040 December 20 2014 Mr John Johnson 100 Morningside Clinton MS 39058 Dear Mr John... View full answer

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