Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lina purchased a new car for use in her business during 2020. The auto was the only business asset she purchased during the year, and
Lina purchased a new car for use in her business during 2020. 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 2020 and 2021 (Lina doesn't want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Problem 10-67 Part a (Algo) a. The vehicle cost $30,200, and business use is 100 percent (ignore $179 expense). Year Depreciation deduction 2020 2021 Problem 10-67 Part c (Algo) c. The vehicle cost $71,000, and she used it 80 percent for business. Year Depreciation deduction 2020 2021 Problem 10-67 Part e (Algo) e. The vehicle cost $71,000, and she used it 20 percent for business. Depreciation deduction Year 2020 2021 Problem 10-67 Part f(Algo) f. The vehicle cost $71,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent. Year Depreciation deduction 2020 2021
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