60.1K

Verified Solution

Link Copied!

In 2022, Leo construction traded in a light duty pickup truck that had a book value of $18,000. A new pickup truck having a fair market value of $55,236 was acquired. Because the vendor accepted the old truck as a trade-in, a deal was agreed, and Leo construction would only pay $32,405 for the new truck.

Compute the third year depreciation (d3) for the new truck using the general depreciation system method.

Class At Description 0011 Office furniture, fists, and equipment 00.12 Information system computer/periphen 00.22 A 00.341 Light penal puse tracks Road can and com 00.25 00.40 Industrial and electric dis 01.11 01.21 13.00 1330 15.00 20.10 22.2 24.10 32.20 37.31 4K11 4K2 49.12 49,13 49.21 50.00 80000 Recovery 1 2 3 4 5 MESE GECES 10 11 12 13 14 15 16 Municipal waterp Theme and amusement parket 125 TABLE 11-3 MACRS Depreciation for Personal Property: Half-Year Convention Applicable Percentage for Property Class 10-Year 15-Y Property Property 17 18 19 20 Coton gia Canle, breeding or dairy Offre drilling a 21 Pending Construction an Manufacture of grain and grain mill produc Manufacture of yarn, thread, and we fabric Culling of her Manufacture of cemen Manufacture of whic Telephone commissandings Radio and television broadcasting equipment Electric utility clear production plant Electric vality steam pla Natural gas production plan 3-Year Property 33.33 44.45 14.81 741 Question 5 S-Year Property 20.00 32.00 19.20 11.52 11.52 5.76 3-Year Property 14.29 24.49 17.49 12.49 8.93 8.92 ADR 8.93 4.46 3 10.00 18.00 14,40 11.32 9.22 137 6.550 6.55 GOS 6.55 3.28 20 15 7 5.00 9.50 8.55 7,70 6.93 623 5.90 5.90 5.91 5.90 591 5.90 ADD 5.91 5.90 5.91 2.95 10 5 24 125 30-Year Property 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4461 4.462 4.461 4.462 4.461 4.461 4.462 4.461 4.462 4.461 2231 2 pts For the new pick-up truck in previous question, what is the salvage value using the general depreciation system (GDS) method

Answer & Explanation Solved by verified expert

See Answer