On July 1, 2011, Rex purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2011, 19,000 miles in 2012, 20,000 miles in 2013, and 15,000 miles in 2014. Determine Rex's basis in the auto as of January 1, 2015, under the following assumptions.

If required, round answers to the nearest dollar.

a. Rex uses the automatic mileage method.

Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table.

2011: $

2012: $

2013: $

2014: $

Rex's adjusted basis in the auto on January 1, 2015, is $.

b. Rex 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.]

Compute his depreciation deductions for year. Click here to access the depreciation table. Click here to access the limits for certain automobiles.

2011: $

2012: $

2013: $

2014: $

Rex's adjusted basis in the auto on January 1, 2015, is $.