Question
CHAPTER10 Lina purchased a new car for use in her business during 2022. The auto was the only business asset she purchased during the year,
CHAPTER10
Lina purchased a new car for use in her business during 2022. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including 179 expense unless stated otherwise) for the automobile in 2022 and 2023 (Lina elects out of bonus depreciation) in the following alternative scenarios (assuming HY convention for all): a. The vehicle cost $35,000, and business use is 100% (ignore 179 expense). b. The vehicle cost $80,000, and business use is 100% (ignore 179 expense). c. The vehicle cost $80,000, and business use is 80% (ignore 179 expense).
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