On May 15, 2015, Leo purchased and placed in service a new car that cost $27,000. The business use percentage for the car is always 100%. He does take the additional first-year depreciation.

If required, round your answers to the nearest dollar.

Click here to accessExhibit 8.3of the textbook. Click here to access thelimits for certain automobiles.

a.What MACRS convention applies to the new car?

Half-year

b.Is the automobile considered "listed property"?

Yes

c.Leo's cost recovery deduction in 2015 is $11,160 and or 2016 is $.____________________