Mike purchased a heavy-duty truck (five year class recovery property) for his delivery service on April 30,2014. 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 half-year convention for tax and no election to expense is made.
a. Calculate the amount of depreciation for 2014 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 2014 using the straight-line depreciation election under MACRS tables over the minimum number of years.
c. Calculate the amount of accelerated depreciation for 2014 that Mike could deduct using the MACRS Tables.