Question
Required information [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2017. The auto
Required information
[The following information applies to the questions displayed below.]
Lina purchased a new car for use in her business during 2017. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including 179 expense unless stated otherwise) for the automobile in 2017 and 2018 (Lina doesnt want to take bonus depreciation for 2017 or 2018) in the following alternative scenarios (assuming half-year convention for all) Exhibit 10-8 (Use MACRS Table 1, Table 2.):
a. The vehicle cost $13,200 and business use is 100 percent (ignore 179 expense).
b. The vehicle cost $46,000, and business use is 100 percent.
c. The vehicle cost $46,000, and she used it 80 percent for business. d. The vehicle cost $46,000, and she used it 80 percent for business. She sold it on March 1 of year 2.
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