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On July 1, 2018, Brent purchases a new automobile for $46,000. He uses the car 84% for business and drives the car for business purposes

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On July 1, 2018, Brent purchases a new automobile for $46,000. He uses the car 84% for business and drives the car for business purposes as follows: 12,500 miles in 2018, 31,250 miles in 2019,35,000 miles in 2020, and 25,000 miles in 2021. Determine Brent's basis in the business portion of the auto as of January 1, 2022, 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. 2018:5 2019:3 2020:5 2021:5 Brent's adjusted basis in the auto on January 1,2022 , is $ \begin{tabular}{cc} \hline Year & Rate per Mile \\ \hline 2022 & 26 cents \\ 2021 & 26 cents \\ 2020 & 27 cents \\ 2019 & 26 cents \\ 2018 & 25 cents \\ \hline \end{tabular} 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 2018 is as follows: $10,000 (first year), $16,000 (second year), $9,600 (third year), and $5,760 (fourth year).] Compute his depreciation deductions for year. Click here to access the depreciation table Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuminq Half-Year Convention (Percentage Rates) *Switchover to straight-line depreciation. MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention * Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS). Exhibit 8.8 MACRS Straight-Line Depreciation for Real Property Assuming Mid-Month Convention* (Percentage Rates) For Proberty Placed in Service after December 11. 16e8t 27.6.Year Recidantial Real Dunnartu. For Property Placed in 5ervlce after December 31, 1966, and before May 13, 1993t 31,5-Year Menresidential Real Property For Freperty Placed in 5ervice after May 12, 19s3: 33-Year Nontesldential feal Property -The official tables contain a separate row for each year. For ease of presentation, certain years are grouped in these tables. In some instances, this will produce a difference of 001 for the last digit when compared with the official tables

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