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