Problem $9-28($LO$.2)$

On July $1,2017,$ Brent purchases a new automobile for $$40,000.$ He uses the car $80\%$ for business and drives the car as follows: $8,000$ miles

in $2017,19,000$ miles in $2018,20,000$ miles in $2019,$ and $15,000$ 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 answers 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.

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 $