Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including $179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) c. The vehicle cost $86,000, and she used it 80 percent for business. Answer is complete but not entirely correct. Year 2019 Depreciation deduction $ 10,000 X 16,000 2020 d. The vehicle cost $86,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Year Depreciation deduction 2019 2020 e. The vehicle cost $86,000, and she used it 20 percent for business. Depreciation deduction Year 2019 2020 f. The vehicle cost $86,000, and is an SUV that weighs 6,500 pounds. Business use was 100 percent. Year Depreciation deduction 2019 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started