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 forpurposes of the listed property and luxury automobile limitations.The truck has a depreciable basis of $39,080 and an estimateduseful life of 5 years. Its estimated salvage value is $1,080. Assume no election to expense is made and bonus depreciation is taken.
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 Recovery System.