20. For assets acquired during the year, the sum-of-the-years'-digits method requires that the same depreciation rate be used... a. for the remaining months of the year of acquisition, then again in 0 the final year of the asset's estimated life for any months not depreciated in Year 1. b. for 12 consecutive months, even if that results in the same rate being used in two different calendar years. c. throughout the life of the asset. d. until the end of the calendar year, then recomputed for the next calendar year. Company records show that an employee provided with a company car drove it 80% for business and 20% for personal use. The company reports the personal use as income on the employee's W-2. As a result... 21. a. the company can depreciate 80% of the car's cost basis. b. the company cannot depreciate the car. c. the company can depreciate 100% of the car's cost basis. d. the company can depreciate the car without IRS limits on annual depreciation. On which of the following assets can a company take a Sec. 179 deduction? 22. a. warehouse b. a computer c. a rental apartment building d. an office building On August 10, 2018, a calendar-year company purchases a new machine (7-year property) with a cost basis of $530,000. Under MACRS, what is the combined first-year Sec. 179 deduction, 100% Bonus, and depreciation (rounded) for the machine? 23. 200 d. $75,737 c. $518,000 b. $517,144 a. $530,000 Under MACRS, a sole proprietor who uses her own car 20% for personal 24. purposes and 80% for business in her unincorporated company... a. can depreciate 80% of the car's cost basis. b. can depreciate 100% of the car's cost basis. c. can depreciate 20% of the car's cost basis. d. cannot depreciate the car if it is not used 100% for business. 211