Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

could someone help? thank you On July 1, 2018, Brent purchases a new automobile for $43,000. He uses the car 90% for business and drives

could someone help? thank you
image text in transcribed
image text in transcribed
On July 1, 2018, Brent purchases a new automobile for $43,000. He uses the car 90% for business and drives the car for business purposes as follow5: 6,500 miles in 2018, 16,250 miles in 2019, 18,200 miles in 2020, and 13,000 miles in 2021. Determine Brent's basis in the business portion of the auto as of January 1, 2022, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2018: 2019:5 2020: 2021: Brent's adjusted basis in the auto on January 1,2022, is $ b. Brent uses the actual cost method. [Assume that no 5179 expensing is daimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2018 is as follows: $10,000 (first year), $16,000 (second year), $9,600 (third year), and $5,760 (fourth year).] Compute his depreciation deductions for year. Click here to access the depredation table Brent's adjusted basis in the auto on January 1, 2022, is 4 \begin{tabular}{ll} \hline Year & Rate per Mile \\ \hline 2022 & 26 cents \\ 2021 & 26 cents \\ 2020 & 27 cents \\ 2019 & 26 cents \\ 2018 & 25 cents \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Anxiety Audit

Authors: Lynn Lyons

1st Edition

0757324258, 978-0757324253

More Books

Students also viewed these Accounting questions

Question

Compare different frameworks for HRD evaluation

Answered: 1 week ago