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purchased a new car for use in be

purchased a new car for use in be

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2 and Exhibit 10.10.) Problem 10-67 Part e (Algo) e. The vehicle cost $84,200, and she used it 20 percent for business. Answer is complete but not entirely correct. Depreciation deduction Year 2023 2024 $ $ 1,688 X 2.694
Transcribed Image Text:Lina purchased a new car for use in her business during 2023. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2023 and 2024 (Lina doesn't want to take bonus depreciation for 2023 or 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1. Table 2 and Exhibit 10.10.) Problem 10-67 Part e (Algo) e. The vehicle cost $84,200, and she used it 20 percent for business. Answer is complete but not entirely correct. Depreciation deduction Year 2023 2024 $ $ 1,688 X 2.694
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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