LO 7.2 7. Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,080 and an estimated useful life of 5 years. Assume no election to expense is made and no bonus depreciation is taken.

a. Calculate the amount of depreciation for 2010 using financial accounting straightline depreciation (not the straight-line MACRS election) over the truck’s estimated useful life.

$ ____________

b. Calculate the amount of depreciation for 2010 using the straight-line depreciation election under MACRS over the minimum number of years.

$ ____________

c. Calculate the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS.

$ ____________ LO 7.2 LO 7.3 LO 7.4