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I need help with part B only: Problem 9-24 (c) (LO. 2) On June 30, 2014, Candice purchases a new automobile for $32,000. She uses
I need help with part B only:
Problem 9-24 (c) (LO. 2) On June 30, 2014, Candice purchases a new automobile for $32,000. She uses the car 80% for business and drives the car as follows: 8,000 miles in 2014, 12,000 miles in 2015, 10,000 miles in 2016, and 13,000 in 2017. Candice is self-employed Determine Candice's basis in the business portion of the auto as of January 1, 2018, under the following assumptions: If required, carry out computations to two decimal places and then round your final answer to the nearest dollar a. Candice uses the automatic mileage method. Compute her basis adjustments for depreciation for each year. Click here to access the basis adjustment table 2014: $ 1,408 2,304 1,920 2,600 2015: $ 2016: $ 2017: $ Candice's adjusted basis in the auto on January 1, 2018, is 17,368 Feedback b. Candice uses the actual cost method. [Assume that no 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. Assume the recovery limitation for 2014 is as follows: $3,160 (first year), $5,100 (second year), $3,050 third year), and $1,875 (fourth year) Compute her depreciation deductions for year. Click here to access the depreciation table 2014: $ 2015: $ 2016:$ 2017: Candice's adjusted basis in the auto on January 1, 2018, is MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) Exhibit 8.3 For Property Placed in Service after December 31, 1986 5-Year (200% DB) 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 20-Year (150% DB) 3.750 7.219 6.677 Recovery Year 3-Year 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93 8.92 8.93 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90 (200% DB) 33.33 20.00 32.00 19.20 11.52 11.52 5.76 2 44.45 14.81. 4 5 6 7.41 5.713 5.285 4.888 6.55Step by Step Solution
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