Problem 9-22 (Algorithmic) (LO. 2) On July 1, 2017, Brent purchases a new automobile for $41,500. He uses the car 84% for business and drives the car as follows: 7,000 miles in 2017, 17,500 miles in 2018, 19,600 miles in 2019, and 14,000 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: $ 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 $ Problem 9-31 (LO. 5) Christine is a full-time fourth-grade teacher at Vireo Academy. During the current year, she spends $1,400 for classroom supplies. On the submission of adequate substantiation, Vireo reimburses her for $500 of these expenses-the maximum reimbursement allowed for supplies under school policy. (The reimbursement is not shown as income (Box 1) of Form W-2 given to Christine by Vireo.] a. What are the income tax consequence of the $1,400, if Christine chooses to itemize her deductions from AGI? She can claim the educator's deduction in the amount of AGI and employee business expense which is is an b. What are the income tax consequences of the $1,400, if Christine claims the standard deduction? She can claim the educator's deduction in the amount of AGI. Problem 9-33 (LO. 6) Shyam is a participant in a SIMPLE S 401(k) plan. He elects to contribute 4% of his $40,000 compensation to the account, and his employer contributes 3%. If an amount is zero, enter "0". Shyam has elected to contribute $ to his SIMPLE 401(k) plan. His employer will contribute $ Of these amounts, $ will not vest immediately. Problem 9-22 (Algorithmic) (LO. 2) On July 1, 2017, Brent purchases a new automobile for $41,500. He uses the car 84% for business and drives the car as follows: 7,000 miles in 2017, 17,500 miles in 2018, 19,600 miles in 2019, and 14,000 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: $ 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 $ Problem 9-31 (LO. 5) Christine is a full-time fourth-grade teacher at Vireo Academy. During the current year, she spends $1,400 for classroom supplies. On the submission of adequate substantiation, Vireo reimburses her for $500 of these expenses-the maximum reimbursement allowed for supplies under school policy. (The reimbursement is not shown as income (Box 1) of Form W-2 given to Christine by Vireo.] a. What are the income tax consequence of the $1,400, if Christine chooses to itemize her deductions from AGI? She can claim the educator's deduction in the amount of AGI and employee business expense which is is an b. What are the income tax consequences of the $1,400, if Christine claims the standard deduction? She can claim the educator's deduction in the amount of AGI. Problem 9-33 (LO. 6) Shyam is a participant in a SIMPLE S 401(k) plan. He elects to contribute 4% of his $40,000 compensation to the account, and his employer contributes 3%. If an amount is zero, enter "0". Shyam has elected to contribute $ to his SIMPLE 401(k) plan. His employer will contribute $ Of these amounts, $ will not vest immediately
