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20. For assets acquired during the year, the sum-of-the-years-digits method requires that the same depreciation rate be used
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Answer #1

Part 20

answer is option B

for 12 consecutive months, even if that results in the same rate being used on two different calendar years.

In sum of the years’ digit method, the same depreciation rate is used for the entire year, that is, 12 consecutive months.

Part 21

answer is option A

The company can depreciate 80% of the car’s cost basis.

The depreciation will be deducted for the time the asset is put into service of business.

Part 22

answer is option B

A computer

The section 179 deduction is applicable on the assets which are used for the purpose of trade or business.

Part 23

answer is option B

$502,144

Half year convention method will be used

500000+ ((530000-500000)*14.29%*6/12)

Part 24

answer is option A

can depreciate 80% of the car's cost basis

The depreciation deduction on the sole proprietor’s taxable income will be limited to proportion the period of vehicle used for business purpose and remaining on the employee’s W-2. In this way, it overall deducts 100% deprecation. However, in case of unincorporated business, it is limited to proportion the period of asset used for business purpose i.e. 80%

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