Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On April 5, 2020, Kinsey places in service a new automobile that cost $48,500. He does not elect 179 expensing, and he elects not to

On April 5, 2020, Kinsey places in service a new automobile that cost $48,500. He does not elect 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset).

Click here to access the depreciation table to use for this problem.

Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar.

Compute the total depreciation allowed for:

2020: $
2021: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

friendliness and sincerity;

Answered: 1 week ago