Your client is a self-employed attorney who is considering the purchase of a $65,000 automobile that \Viii be used 80% for business.

a. What depreciation method and recovery period are used under MACRS for the automobile?

b. How would your answer to Part a change if your client were an employee and the automobile ,vas not required as a condition of employment?

c. What tax consequences occur in Part a if the business use of the automobile decreases co 50% or less in a succeeding year? Explain.