On June 1, 2021, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $60,000o. Assuming that the corporation elects the accelerated method of cost recovery for the asset and takes bonus depreciation, what is the total tax depreciation deduction for the 2021 calendar tax year (Year 1)? Oa. $18.200 Ob. $10,100 Oc. $12.000 Od. $11.160 Oe. None of these choices are correct.

On June 1, 2021, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $60,000o. Assuming that the corporation elects the accelerated method of cost recovery for the asset and takes bonus depreciation, what is the total tax depreciation deduction for the 2021 calendar tax year (Year 1)? Oa. $18.200 Ob. $10,100 Oc. $12.000 Od. $11.160 Oe. None of these choices are correct.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 26P

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