Two years ago, on March 1, 2020 Mark bought a new tractor. Mark traded his old tractor which had a remaining book value of 5,214. Mark paid $25,000 'down" and financed the remaining $ 50,000 over 5 years at 6% interest. He elected to roll the remaining basis of his old tractor into the new one. If Mark did not expense any of the cost of the tractor and he chose to use regular MACRS and mid-year convention for his 2020 depreciation, then his 2021 depreciation will be? Group of answer choices. 8,594.13 12,347.34 15, 347.34 20, 454.57
Two years ago, on March 1, 2020 Mark bought a new tractor. Mark traded his old tractor which had a remaining book value of 5,214. Mark paid $25,000 'down" and financed the remaining $ 50,000 over 5 years at 6% interest. He elected to roll the remaining basis of his old tractor into the new one. If Mark did not expense any of the cost of the tractor and he chose to use regular MACRS and mid-year convention for his 2020 depreciation, then his 2021 depreciation will be? Group of answer choices. 8,594.13 12,347.34 15, 347.34 20, 454.57
Chapter3: Income Sources
Section: Chapter Questions
Problem 85P
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Transcribed Image Text:Two years ago, on March 1, 2020 Mark
bought a new tractor. Mark traded his
old tractor which had a remaining book
value of 5,214. Mark paid $25,000
'down" and financed the remaining $
50,000 over 5 years at 6% interest. He
elected to roll the remaining basis of his
old tractor into the new one. If Mark did
not expense any of the cost of the tractor
and he chose to use regular MACRS and
mid-year convention for his 2020
depreciation, then his 2021 depreciation
will be? Group of answer choices.
8,594.13 12,347.34 15, 347.34 20, 454.57
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