Straight-Line Depreciation. Bobby’s marginal tax rate has
been low for several years because his sole proprietorship has had low profits.
Therefore, he has not elected Sec. 179 expensing, elected out of bonus
depreciation, and elected to use the alternative depreciation system for
property acquisitions. Bobby acquires, holds, or sells the following assets in
2019:
Assume the half-year convention applies for each year.
a. What is the depreciation deduction for each asset in
2019?
b. What amount of gain or loss does Bobby recognize on the
properties sold in 2019?
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