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,
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.) a. The vehicle cost $32,800, and business use is 100 percent (ignore $179 expense). Year 2020 2021 Depreciation deduction 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.) b. The vehicle cost $84,000, and business use is 100 percent. Year Depreciation deduction 2020 2021 Required information [The following information applies to the questions displayed below] 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 ina 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 c. The vehicle cost $84,000, and she used it 80 percent for business Year Depreciation deduction 2020 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the maximum depreciation deductions for Linas automobiles well apply the Modified Accel...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