1.On April 5, 2018, Kinsey places in service a new automobile that cost $77,000. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 90% for business and 10% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).

Click here to access the depreciation table to use for this problem.

Assume the following luxury automobile limitations: year 1: $10,000; year 2: $16,000.

If required, round your final answers to the nearest dollar.

Compute the total depreciation allowed for: 2018 & 2019

2.On March 25, 2018, Parscale Company purchases the rights to a mineral interest for $9,162,500. At that time, the remaining recoverable units in the mineral interest are estimated to be 791,900 tons.

If required, round any division to two decimal places and use in subsequent computations. Round your final answer to the nearest dollar.

If 712,710 tons are mined and 118,785 tons are sold this year, the cost depletion is?

3.In 2015, Jos purchased a house for $202,000. He used the house as his personal residence. In January 2018, when the fair market value of the house was $268,900, he converted the house to rental property.

Complete the items below.

If required, round your answers to the nearest dollar.

Click here to access depreciation tables in the textbook.

The cost recovery for 2018 is?