What would be the result of this on an 1120 tax form?

•  BB also traded in its old delivery truck for a new delivery truck (both 5 year class life assets) on November 1^st and immediately placed the new truck into service. The new truck cost $35,000, but BB received $10,000 of credit on the trade-in of the old vehicle and paid the remaining $25,000 in cash. The old vehicle was a 5 year asset that was acquired in the first quarter of 2017 and its original basis was $30,000. BB used the mid-quarter convention in 2017 and the total tax depreciation on the old vehicle from prior years was $18,300. 

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Answer The result of this would be a 10700 depreciation expense on the new truck and a 1500 depr... View the full answer