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Question - Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and luxury automobile limitations) on May 1, 2020 for use in its business. The truck, with a cost basis of $24,000, has a 5-year estimated life. It also is 5-year recovery property. How much depreciation should be taken on the truck for the 2020 calendar tax year using the conventional (for financial accounting purposes) straight-line depreciation method?
a. $2,400
b. $3,200
c. $4,800
d. $400
e. None of these choices are correct.
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