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Problem 8-46 (LO. 4) On June 5, 2018, Leo purchased and placed in service a new car that cost $75,000. The business use percentage for
Problem 8-46 (LO. 4) On June 5, 2018, Leo purchased and placed in service a new car that cost $75,000. The business use percentage for the car is always 100%. Leo does not claim any available additional first-year depreciation or any 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. Click here to access the limits 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 2018 is s and for 2019 is sl Date Placed in Service First Year Second Year Third Year Fourth and Later Years 2018* $10,000 $16,000 $9,600 $5,760 2017 $ 3,160 $ 5,100 $3,050 $1,875 2012-2016 $ 3,160 $ 5,100 $3,050 $1,875 2010-2011 $ 3,060 $ 4,900 $2,950 $1,775 *The TCJA of 2017 significantly increased the annual limitations beginning in 2018. Because the 2019 indexed amounts were not available when we published, the 2018 amounts are used in the Examples and end-of-chapter problem materials
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