On July 1, 2016, Rex purchases a new automobile for $40000. He uses the car 80% for business and drive the car as follows : 8000 miles in 2016, 19000 miles in 2017, 20000 miles in 2018, and 15000 miles in 2019. Determine Rex's basis in the business portion of the auto as of January 1,2020 under the following assumptions

A. Rex uses the automatic mileage method

b. Rex uses the actual cost method. (assume that no $179 expensing is claimed and that 200% declining -balance cost recovery with a half-year convention is used - see chapter 8 The recovery limitation for an auto-placed service in 2016 is as follows $3160 (first year), $5100 (second year) , $3050 (third year ) and $1875 (fourth year)