In March 2020, Jones Company purchased a Mercedes for use in its business at a cost of $73,000.

Required:

Assuming no bonus depreciation or Section 179 deduction, calculate the allowable tax depreciation on this asset for 2020, 2021, and 2022. Use Table 7-1 and Table 7-2. Use the below table for annual depreciation deduction for year 2020 to 2022:

2020	$ 10,100
2021	16,100
2022	9,700
2023 and subsequent years	5,760

In year 1, Firm A paid $50,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm As marginal tax rate in both years was 21 percent.

Required:

1. Compute Firm As net cash flow attributable to the asset purchase in each year.
2. Compute Firm As adjusted basis in the asset at the end of each year.

Complete this question by entering your answers in the tabs below. Required A Required B Compute Firm A's net cash flow attributable to the asset purchase in each year. (Cash outflows should be indicated by a minus sign. Round your intermediate calculations and final answers to nearest whole dollar amount.) Year 1 Year 2 Before-tax cash flows Tax (cost) or savings Net cash flow $ 0 0