48. LO.3, 4 John Johnson is considering acquiring an automobile at the beginning of 2013 that he will use 100% of the time as a taxi. The purchase price of the automobile is

$35,000. John has heard of cost recovery limits on automobiles and wants to know how much of the $35,000 he can deduct in the first year. Write a letter to John in which you present your calculations. Also prepare a memo for the tax files. John’s address is 100 Morningside, Clinton, MS 39058.