Quiz 9 sec 2 sol

Quiz 9 sec 2 sol - IE 343 Spring 2010 Section 2 Quiz 9...

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IE 343 Spring 2010 Name: Section 2, Quiz 9 (last) (first) Closed book, closed notes. No calculators. 1. The local UPS store has purchased a new truck for $15,000 to assist with its delivery service. The truck falls under the 00.241 asset class category and has an ADS recovery period of 5 years. If the UPS store sells the truck for $8,200 at the end of the 3 rd year, what is the capital gain (or loss) on the truck at this time? To calculate the depreciation deductions over ADS recovery periods, SL method is used. 1 3 2 15000 1 3000; 3000; 3000 52 k d d d d Note that half-time convention is applied for the 1 st and 3 rd year. * 3 1 2 3 * 33 6000 15000 6000 9000 d d d d BV B d Capital gain = MV
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