On June 1, 2018, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business.
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Question:
On June 1, 2018, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $60,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2018 calendar tax year (Year 1)?
a.$18,000
b.$10,000
c.$12,000
d.$11,160
e.None of these choices are correct.
Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
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