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leva [86]
4 years ago
12

In 2019, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 100 percent fo

r business. Assuming the half-year convention applies and Ben does not elect out of bonus depreciation, what will depreciation on the auto be in 2018
Business
1 answer:
kupik [55]4 years ago
3 0

Answer:

<em>$11,400</em>

Explanation:

The Automotive price is = $57,000.

Vehicle used for business purposes= 100%.

This will be known as a property that will last five years.

Half-year convention average for the first year is 20 per cent.

<em>Since the asset is used 100 percent for business purposes, the book value</em>

= $57,000* 100 percent

= $57,000 for business purposes.

<em>As incentive depreciation is not an immediate cost, car depreciation</em>

= $57,000* 20 per cent

= $11,400.

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