Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a

depreciable basis of $39,080 and an estimated useful life of 5 years. Its estimated salvage value is $1,080. Assume no election to expense is made and no bonus depreciation is taken. a. Calculate the amount of depreciation for 2010 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life. b. Calculate the amount of depreciation for 2010 using the straight-line depreciation election under MACRS over the minimum number of years. c. Calculate the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS.

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i need help with how to do this as well

a) To calculate the amount of depreciation for 2010 using financial accounting straight-line depreciation, you need to subtract the estimated salvage value from the depreciable basis and divide it by the estimated useful life.

Depreciation = (Depreciable basis - Salvage value) / Useful life

Depreciation = ($39,080 - $1,080) / 5
Depreciation = $38,000 / 5
Depreciation = $7,600

Therefore, the amount of depreciation for 2010 using financial accounting straight-line depreciation is $7,600.

b) To calculate the amount of depreciation for 2010 using the straight-line depreciation election under MACRS over the minimum number of years, you need to use the applicable recovery period for heavy-duty trucks, which is 5 years.

Depreciation = (Depreciable basis * (1 / Useful life))

Depreciation = $39,080 * (1 / 5)
Depreciation = $39,080 / 5
Depreciation = $7,816

Therefore, the amount of depreciation for 2010 using the straight-line MACRS election over the minimum number of years is $7,816.

c) To calculate the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS, you need to use the MACRS depreciation tables provided by the IRS. The applicable recovery period for heavy-duty trucks is 5 years.

For the first year, you need to refer to the table for the 5-year recovery property and find the suitable depreciation percentage. Let's assume it is 20%.

Accelerated depreciation = Depreciable basis * Depreciation percentage

Accelerated depreciation = $39,080 * 20%
Accelerated depreciation = $39,080 * 0.2
Accelerated depreciation = $7,816

Therefore, the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS is $7,816.