Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2012. 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. Assume no election to expense is made and no bonus depreciation is taken.
a. Calculate the amount of depreciation for 2012 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
b. Calculate the amount of depreciation for 2012 using the straight-line depreciation election, using MACRS tables over the minimum number of years.
c. Calculate the amount of accelerated depreciation for 2012 that Mike could deduct using the MACRS tables.