Question

On March 15, 2019, Helen purchased and placed in service a new Escalade. The purchase price of the automobile was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business.

If required, round your answers to the nearest dollar.
Click here to access the depreciation table to use for this problem.

a. Assuming that Helen does not use additional first-year depreciation, calculate the total depreciation deduction that she can take on the vehicle for 2019.

Section § 179 expense $ MACRS cost recovery Total deduction $

b. What is her total depreciation deduction if Helen decided to take additional first-year depreciation?
$

Answer 1

| Answert a) Caleutalton of the Total Deduction :- - particulars Amount Section $179 Expense $25,500 Addi MACRS Cost Recovery (462,000-105,500x207] $ 7,300 Total Deduction $32,800 The Total depreciation deduction can take on the vehicle for 2019 is $32,800 b) The Helen elects to use bonus depreciation on the full Cost of $62,000 would be recovered in 2019. :The Total depreciation deduction is $ 62,000