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Problem
In June 2016, a factory owner traded in 5 heavy general purpose trucks used in its business, which had a book value at that time of $22,000 to a dealer. As a result, a total of 8 new light general purpose trucks having a fair market value of $480,000 was acquired by the factory owner from the dealer.
i. If MACRS depreciation with half-year convention is adopted, what are the GDS property class and recovery period of the new light general purpose trucks?
Create a detailed depreciation schedule for the new light general purpose trucks?
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