Comprehensive Problem $11-68($LO $11-1,$ LO $11-2,$ LO $11-3,$ LO $11-4,$ LO $11-5,$ LO $11-6)($Static$)$

Two years ago, Bethesda Corporation bought a delivery truck for $\backslash (\backslash$$ $30,000\backslash )($not subject to the luxury auto depreciation limits$).$ Bethesda used MACRS $200$ percent declining balance and the half$-$year convention to recover the cost of the truck, but it did not elect $\backslash$$$179$ expensing and opted out of bonus depreciation. Answer the questions for the following alternative scenarios. Use MACRS Table.

Required:

a$.$ Assuming Bethesda used the truck until it sold it in March of year $3,$ what depreciation expense can it claim on the truck for years $1$ through $3?$

b$.$ Assume that Bethesda claimed $\backslash (\backslash$$ $18,480\backslash )$ of depreciation expense on the truck before it sold it in year $3.$ What are the amount and character of the gain or loss if Bethesda sold the truck in year $3$ for $\backslash (\backslash$$ $17,000\backslash )$ and incurred $\backslash (\backslash$$ $2,000\backslash )$ of selling expenses on the sale?

c$.$ Assume that Bethesda claimed $\backslash (\backslash$$ $18,480\backslash )$ of depreciation expense on the truck before it sold it in year $3.$ What are the amount and character of the gain or loss if Bethesda sold the truck in year $3$ for $\backslash (\backslash$$ $35,000\backslash )$ and incurred $\backslash (\backslash$$ $3,000\backslash )$ of selling expenses on the sale?

Complete this question by entering your answers in the tabs below.

Required a

Assuming Bethesda used the truck until it sold it in March of year $3,$ what depreciation expense can it claim on the truck for years $1$ through $3?$

Note: Do not round percentages used for calculations. Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

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