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Can someone help me with this question, thank you in advance.
Linda brought a new vehicle at year 1 of $20k, she did not election section 179 or bonus depreciation. The depreciable life of the vehicle is 5 years, and linda use Macrs to calculate the deprecation for income tax purpose. she sold the vehicle in year 2 for 18k.
The Macrs 5 year depreciation is the following rate.
Year 1 : 20%
year 2: 32%
year 3: 19.2%
year 4 & 5: 11.52%what is the remaining basis before sale using the actual expenses method since purchase? – the answer is $14,600
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