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#### hi

a confusing mess. Can someone help with how these answers are calculated? My

head is spinning from all the 30% additional depreciation and looking at

these confusing charts.

1. Diane purchased a factory building on Nov 15, 1992 for $5,000,000. She

sells the factory building on February 2, 2003. Determine the cost recovery

deduction for the year of the sale.

a. 16,025

b. 19,844 <- the answer

c. 26,458

d. 128,200

e. 158,750

2. John purchased a new car on June 5, 2003 at a cost of $12,000. John used

the car 100% for personal use. Determine his cost recovery deduction in

2003.

-- is the answer 0 because it's a personal use car?

3. On Juuly 10, 2003 Ariff places in service a new sports utility vehicle

that cost 60,000 and weighed 6,300 pounds. The SUV is used 100% for

business. Determine his maximum depreciation for 2003.

a. 7,600

b. 26,400

c. 35,500

d. 40,400 <- the answer

e. none of the above

-I can't figure it out. I took an additional 30% (18,000) and then 42,000 x

..20 (8,400) for a total of 26,400. How do you get 40,400? What am I missing?

4. White company acquires a new machine (seven year property) for $204,000.

White makes the election to expense the maximum amount under 179. No

election is made to use the straight-line method. Determine the total

deductions in calculating taxable income related to the machine for 2003

assumign white has taxable income of 500,000.

a. 46,294

b. 51,151

c.94,205 <-- the answer (how?)

d. 96,294

e. none of the above