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Question - Deuce Company purchased a truck for $50,000 on January 2, 20X1. The asset has an expected salvage value of $5,000 at the end of its five-year useful life. How much is the depreciation expense in 20X2 if sum-of-years digits depreciation is used?
a. $6,000
b. $9,000
c. $12,000
d. $15,000
How much of this expenditure is deductible for determining GAAP? income, and how much is deductible in determining Net Income for Tax? Purposes
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