Calculate the amount of accelerated depreciation for 2008

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Reference no: EM13482629

Mike purchased a heavy-duty truck (five yearclass recovery property) for his delivery service on April 30,2008. 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 $39,080 and an estimated useful life of 5 years. Its estimated salvage value is $1,080. Assume no election to expense is made and bonus depreciation istaken.

a. Calculate the amount of depreciation for 2008 using financial accounting (not the straight-line MACRS election) straight-line depreciation over the truck's estimated useful life.

b. Calculate the amount of depreciation for 2008 using the straight-line depreciation election under MACRS over the minimum number of years

c. Calculate the amount of accelerated depreciation for 2008 that Mike could deduct using the Modified Accelerated Cost.

Reference no: EM13482629

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