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On July 1 , 2 0 1 9 , Brent purchases a new automobile for $ 4 0 , 0 0 0 . He uses

On July 1,2019, Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car for business
purposes as follows: 8,000 miles in 2019,19,000 miles in 2020,20,000 miles in 2021, and 15,000 miles in 2022.
Determine Brent's basis in the business portion of the auto as of January 1,2023, under the following assumptions:
If required, round answers to the nearest dollar.
a. Brent uses the automatic mileage method.
Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table.2020:$
2021: $
2022: $
Brent's adjusted basis in the auto on January 1,2023, is $
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A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. A basis adjustment
is required if the taxpayer changes from the automatic mileage method to the actual operating cost method. The law places special limitations on
the cost recovery deduction for passenger automobiles.
b. Brent uses the actual cost method. [Assume that no 179 expensing is claimed and that 200% declining-balance cost recovery with the
half-year convention is used. The recovery limitation for an auto placed in service in 2019 is as follows: $10,100(first year), $16,100
(second year), $9,700(third year), and $5,760(fourth year).]
Compute his depreciation deductions for year. Click here to access the depreciation table.
2019: $ x
2020: $ x
2021: $ x
2022: $ x
Brent's adjusted basis in the auto on January 1,2023, is $
X .
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