On July 1, 2016, Rex purchases a new automobile for $49,000. He uses the car 80% for business and drives the car as follows: 12,000 miles in 2016, 30,000 miles in 2017, 33,600 miles in 2018, and 24,000 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.

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.

2016:

2017:

2018:

Click here to access the depreciation table.

MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention

For Property Placed in Service after December 31, 1986
			Other Recovery Years				Last Recovery Year
MACRS Class	% First Recovery Year		Years		%		Year		%
3-year	16.67		23		33.33		4		16.67
5-year	10.00		25		20.00		6		10.00
7-year	7.14		27		14.29		8		7.14
10-year	5.00		210		10.00		11		5.00
15-year	3.33		215		6.67		16		3.33
20-year	2.50		220		5.00		21		2.50

Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS).

2019:

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