What is the depreciable basis

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Reference no: EM131896629

1. Jose purchased and put his heavy SUV into service in May 2015 and used it 80%. The basis of his SUV is $44,000. If he takes the maximum 179 expense deduction and bonus depreciation, what is the depreciable basis?

A. $9,500

B. $8,000

C. $7,600

D. $5,100

2 .Suppose you sell a fixed asset for $123,000 when it's book value is $151,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

$151,000

$28,000

$130,840

$20,160

Reference no: EM131896629

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