Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1,2017 , Brent purchases a new automobile for $35,500. He uses the car 82% for business and drives the car as follows: 11,000

image text in transcribed

image text in transcribed

On July 1,2017 , Brent purchases a new automobile for $35,500. He uses the car 82% for business and drives the car as follows: 11,000 miles in 2017, 27,500 miles in 2018,30,800 miles in 2019, and 22,000 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:s 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 On July 1,2017 , Brent purchases a new automobile for $35,500. He uses the car 82% for business and drives the car as follows: 11,000 miles in 2017, 27,500 miles in 2018,30,800 miles in 2019, and 22,000 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:s 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Assurance & Consulting Services

Authors: Kurt F Reading, Paul J Sobel, Urton L Anderson, Michael J Head, Sri Ramamoorti

1st Edition

ISBN: 0894136100, 9780894136108

More Books

Students also viewed these Accounting questions

Question

=+a. Is it relevant to the audience?

Answered: 1 week ago

Question

=+c. Would it generate press attention?

Answered: 1 week ago

Question

=+d. Would it create talk value or buzz?

Answered: 1 week ago