Question
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2016, Kinsey places in service a new automobile that cost $42,500. He does not elect 179 expensing,
Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2016, Kinsey places in service a new automobile that cost $42,500. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 85% for business and 15% 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: $3,160; year 2: $5,100. Compute the total depreciation allowed for:
2016: $?? 2017: $??
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