Question: I could really use some help with this problem please.... modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3) Mike

I could really use some help with this problem please....

modified Accelerated Cost Recovery System (MACRS), Election to Expense (Section 179) (LO 8.2, 8.3)

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 the straight-line MACRS election) over the truck's estimated useful life.

b. Calculate the amount of depreciation for 2020 using the straight-line depreciation election, using MACRS tables over the minimum number of years with no bonus depreciation or election to expense.

c. Calculate the amount of depreciation for 2020, including bonus depreciation but no election to expense, that Mike could deduct using the MACRS tables.

d. Assume no income limit on the expense election. Calculate the amount of depreciation for 2020 including the election to expense but no bonus depreciation that Mike could deduct.

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