In January of 2019, Carol Brady is trying to decide if she should purchase a new vehicle for her business, We Are Brady, Inc. Carol has asked you to calculate the amount of depreciation that she will be able to deduct for each of the following vehicles that she is considering purchasing. Assume that she will purchase the vehicle in September, 2019, and also assume that no other assets will be purchased in 2019.

1.  a. If Carol purchases a new Porsche 911 for $100,000, what is the maximum amount that Carol may deduct in 2019? Carol plans to drive the Porsche 75% of the time for business. Carol elects to take the additional first-year depreciation.

2. b.  If Carol, in April 2020, purchases a Ford Explorer (an SUV with GVW 6,000 pounds and 14,000 pounds) for $63,750, what is the maximum amount that Carol may deduct in 2020? Carol plans to drive the Hummer 100% of the time for business.

i.  If Carol elects not to take the additional first-year depreciation, what is the maximum amount that she may deduct in 2019?

ii. Carol elects to take the additional first-year depreciation, what is the maximum amount that she may deduct in 2019?

Answer rating: 100% (QA)

1 If Carol purchases a new Porsche 911 for 100000 she may deduct 18500 ... View the full answer