1) Patrick purchased a used passenger automobile on June 1, 2018. He paid $19,000 for the automobile. During 2018, he uses the automobile 75 percent of the time for business. Patrick wishes to claim the maximum amount of depreciation possible (no bonus depreciation or election to expense).

a. Calculate Patrick's depreciation expense on the automobile for 2018.

b. Calculate Patrick's depreciation expense on the automobile for 2019, assuming the same 75 percent business use.

2) The office building Donna owned and used for her desk-top publishing business was destroyed by a hurricane. Although the basis of the building was $80,000, Donna carried replacement cost insurance and received $160,000 from the insurance company after it was determined that the building was a complete loss. It cost her $152,000 to rebuild the store in the current year.

a. Calculate Donnas recognized gain, assuming an election under the involuntary conversion provision is made.	$__________
b. Calculate Donnas basis in the replacement building. $__________