Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30,

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Mike purchases a new heavy-duty truck (5-year class recovery property) for his delivery service on March 30, 2020. No other assets were purchased during the year. 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 $46,000 and an estimated useful life of 5 years. Assume half-year convention for tax.

a. Calculate the amount of depreciation for 2020 using financial accounting straight- line depreciation (not

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Income Tax Fundamentals 2021

ISBN: 9780357141366

39th Edition

Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill

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