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On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 86% for business and drives the car as follows:

On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 86% for business and drives the car as follows: 6,000 miles in 2017, 15,000 miles in 2018, 16,800 miles in 2019, and 12,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ b. Brent 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 2017 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. 2017: 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $

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Answer A Year Answer 2017 1290 2018 3225 2019 3756 2020 2786 Adjusted Basis on January 1 2021 ... blur-text-image

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