Exercise 5-9 (Algorithmic) (LO. 8) On April 5, 2020, Kinsey places in service a new automobile that cost $50,000. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% 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: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 2020: 2021: bit 5.6 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Servical Year(s) 1 2 3 4 5 6 7 9 10 11 12 1 3.485 3.182 2.879 2576 2.273 1.970 1.667 1.364 1.051 0.758 0455 0.152 2-18 3.636 3.636 3.636 3.636 3,636 3.636 3.636 3.636 3.636 3.636 3.636 3,636 19-27 3.637 3637 3.637 3.637 3.637 3.637 3,637 3.637 3.637 3.637 3.637 3.637 28 1.970 2273 2576 2.879 3.182 3485 3.636 3.636 3.636 3.636 3.636 3.636 29 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0455 0.758 1.061 1.364 1.667 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentagels (Use the Column for the Month in the First Year the Property is placed in Service: Year(s) 1 2 3 5 6 7 8 9 10 11 12 1 3.042 2.778 2513 2.249 1.984 1.720 1455 1.190 0.926 0.661 0.397 0.132 2-19 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 20-31 3.174 3.174 3.174 3.174 3.174 3.174 3.174 3.174 2174 3.174 3.174 3.174 32 1.720 1.984 2.249 2.513 2.778 3.042 3.175 3.175 3.175 3.175 3.175 3.175 33 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery The Applicable Percentage is (Use the Column for the Month in the First Year the Property is placed in Service) Year(s) 1 2 3 5 6 7 10 11 12 1 2461 2.247 2033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0.321 0.107 2-39 2.564 2564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 0.107 0321 0.535 0.749 0.963 1.177 1.391 1,605 1.819 2033 2247 2.461 2564
