Question
Problem 9-22 (Algorithmic) (LO. 2) On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 90% for business and drives
Problem 9-22 (Algorithmic) (LO. 2) On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 90% for business and drives the car as follows: 9,000 miles in 2017, 22,500 miles in 2018, 25,200 miles in 2019, and 18,000 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: $fill in the blank 0cafad047059fa7_1 2018: $fill in the blank 0cafad047059fa7_2 2019: $fill in the blank 0cafad047059fa7_3 2020: $fill in the blank 0cafad047059fa7_4 Brent's adjusted basis in the auto on January 1, 2021, is $fill in the blank 0cafad047059fa7_5 . 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: $fill in the blank 407468063045023_1 2018: $fill in the blank 407468063045023_2 2019: $fill in the blank 407468063045023_3 2020: $fill in the blank 407468063045023_4 Brent's adjusted basis in the auto on January 1, 2021, is $fill in the blank 407468063045023_5 .
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