On June 5, 2018, Roxy Company purchases apassenger auto for $60,000. Roxy does nottake a Sec. 179 deduction and elects out of100% bonus on all 5-year property. Computetax depreciation for 2018-2025.A company car is used 60% for business and40% for personal use. Annual tax depreciationis $16,000. Compute allowable depreciation if:a. The car is owned by a corporation and drivenby an employee.b. The car is owned by Joan's soleproprietorship and driven by employee Jim.c. The car is owned by a sole proprietorship anddriven by the owner.

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On June 5, 2018, Roxy Company purchases a passenger auto for $60,000. Roxy does not take a Sec. 179 deduction and elects out of 100% bonus on all 5-year property. Compute tax depreciation for 2018-2025.

On June 5, 2018, Roxy Company purchases a passenger auto for $60,000. Roxy does not take a Sec. 179 deduction and elects out of 100% bonus on all 5-year property. Compute tax depreciation for 2018-2025.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 27CE

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Question

100%

On June 5, 2018, Roxy Company purchases a
passenger auto for $60,000. Roxy does not
take a Sec. 179 deduction and elects out of
100% bonus on all 5-year property. Compute
tax depreciation for 2018-2025.
A company car is used 60% for business and
40% for personal use. Annual tax depreciation
is $16,000. Compute allowable depreciation if:
a. The car is owned by a corporation and driven
by an employee.
b. The car is owned by Joan's sole
proprietorship and driven by employee Jim.
c. The car is owned by a sole proprietorship and
driven by the owner.

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