On July 1, 2015, Rex purchases a new automobile for $37,000. He uses the car 88% for business and drives the car as follows: 6,000 miles in 2015, 15,000 miles in 2016, 16,800 miles in 2017, and 12,000 miles in 2018.

Determine Rex's basis in the business portion of the auto as of January 1, 2019, 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.

Basis Adjustment table:

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. The recovery limitation for an auto placed in service in 2015 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).]

Compute his depreciation deductions for year.

2015: $ 1,267 2016: $ 3,168 2017: $ 3,696 2018: $ 2,640 Rex's adjusted basis in the auto on January 1, 2019, is $ 26,229 X Year Rate per Mile 2019 2018 2017 2016 2015 26 cents 25 cents 25 cents 24 cents 24 cents 2015: $ 2016: $ 2017: 2018: Rex's adjusted basis in the auto on January 1, 2019, is $