Ralph buys a new truck (5-year MACRS property) to use in his landscaping business on May 13, 2018, at a cost of $18,000. On November 5, 2018, Ralph takes advantage of an end of the season clearance sale to purchase various landscaping equipment (7-year MACRS property) costing $34,000. Assuming that Ralph does not wish to immediately expense any of the cost of the property purchased this year and elects not to take bonus depreciation, what is his 2018 maximum allowable cost recovery deduction?
A)$2,114
B)$5,714
C)$8,459
D)$2,086
E)$15,500

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The Answer of Ralph buys a new truck (5-year MACRS property) to use in his landscaping business on May 13, 2018, at a cost of $18,000. On November 5, 2018, Ralph takes advantage of an end of the season clearance sale to purchase various landscaping equipment (7-year MACRS property) costing $34,000. Assuming that Ralph does not wish to immediately expense any of the cost of the property purchased this year and elects not to take bonus depreciation, what is his 2018 maximum allowable cost recovery deduction?
A)$2,114
B)$5,714
C)$8,459
D)$2,086
E)$15,500

Ralph Buys a New Truck (5-Year MACRS Property) to Use