On July 1, 2016, Rex purchases a new automobile for $52,000. He uses the car 84% for business and drives the car as follows: 10,000 miles in 2016, 25,000 miles in 2017, 28,000 miles in 2018, and 20,000 miles in 2019.

Determine Rex's basis in the business portion of the auto as of January 1, 2020, under the following assumptions:

If required, round your computations 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.

2016: $fill in the blank 412cc5f3afb3fbb_1

2017: $fill in the blank 412cc5f3afb3fbb_2

2018: $fill in the blank 412cc5f3afb3fbb_3

2019: $fill in the blank 412cc5f3afb3fbb_4

Rex's adjusted basis in the auto on January 1, 2020, is $fill in the blank 412cc5f3afb3fbb_5.

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 2016 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. Click here to access the depreciation table.

2016: $

2017: $

2018: $

2019: $

Rex's adjusted basis in the auto on January 1, 2020, is $

Question 2 .

In June of this year, Dr. and Mrs. Bret Spencer traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Bret, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Mrs. Spencer attended group meetings where various aspects of family tax planning were discussed. On the other day, she went sightseeing. Mrs. Spencer does not work for her husband, but she prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below.

Airfare (two tickets)	$2,600
Lodging (single and double occupancy are the same rate$235 each day)	705
Meals ($330 x 3 days)*	990
Conference registration fee (includes $120 for Family Tax Planning sessions)	860
Car rental	345
*Split equally between Dr. and Mrs. Spencer.

If an amount is zero, enter "0". If required, round your interim calculations to nearest dollar.

How much, if any, of these expenses can the Spencers deduct?

Mrs. Spencer's activities constitute a trade or business. Therefore, she can deduct $fill in the blank 2 of her expenses.

Bret's deductible expenses are:

Airfare (one ticket)
Lodging
Meals	$
Less: 50% limit
Registration fee
Car rental
Total