Distributor for the local newspaper

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Reference no: EM13953004

Ashton, a college student, bought a truck in 2012 for $6,000. He used the truck 70% of the time as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five-year recovery period, and he claimed depreciation deductions of $840 in 2012 and $1,344 in 2013. Ashton sells the truck on June 20, 2014 for $3,000.

a. What is the amount of allowable depreciation in 2014?

b. What is Ashton’s realized and recognized gain or loss and what is its character?

Reference no: EM13953004

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