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G&M Enterprises Purchased a 6,500 Pound SUV (Not Considered a Passenger

Question 3

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G&M Enterprises purchased a 6,500 pound SUV (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on June 1,2011 for use in its business.The SUV,with a cost basis of $29,000,has a 5-year estimated life.It also is 5-year recovery property.How much depreciation and Section 179 expense should be taken on the SUV for the 2011 calendar tax year,assuming G&M Enterprises wishes to maximize its deduction? Do not consider bonus depreciation.


A) $25,000
B) $4,000
C) $5,800
D) $2,917
E) $25,800

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