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Required information [The following information applies to the questions displayed below.] Phil owns a ranch business and uses four-wheelers to do much of his work.

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Required information [The following information applies to the questions displayed below.] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation). Depreciation deduction Required information [The following information applies to the questions displayed below] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. Calculate the allowable depreciation for year 2 if total miles were 930 and personal use miles were 400 (ignore the $179 expense and bonus depreciation) Depreciation deduction Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 14.29% 33.33% 20.00% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 14.40 6.677 19.20 17.49 8.55 Year 4 6.177 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 5.713 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 6.55 8.93 5.90 4.888 Year S 5.90 4.522 4.46 6.55 Year 9 5.91 6.56 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 4.461 5.90 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 7-Year 5-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 15.60 15.31 Year 3 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 1.09 Year 8 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 11.37 Year 5 8.87 Year 6 4.26 8.87 8.87 Year 7 Year S 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% 34.00 25.51 Year 2 Year 3 20.40 18.22 12.24 13.02 Year 4 Year 5 11.30 9.30 8.85 Year 6 7.06 8.86 Year 7 Year S 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 27.55 38.00 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 9Month 10 Month 11 Month 1 Month 4 Month S Month 2 Month 3 Month 5 Month 6 Month 7 Month 12 3.182% 2.576% 1.667% 1.364% Year 1 3.485% 2.879% 2.273% 1.970% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3,637 3.637 3.636 Year 12 3.637 3.637 3.636 3.636 3.636 3.636 3,636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 16 3.637 3.637 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 20 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 26 3.637 3.637 3.637 3.636 3,636 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 Year 29 0.152 0.455 0.758 1.06 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line 31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 4 Month 12 Month 2 Month 3 Month 5 Month 6 Month 7 Month S Month 9 Month 10 Month 11 Year 1 1455% 1.190% 3.042% 2.778% 2.513% 2.249% 1.984% 1.720% 0.926% 0.661% 0.397% 0.132% Year 2-7 3.175 3.175 3,175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year S 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 Year 10 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.174 3.174 3.175 Year 11 3.174 3.175 3.175 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 13 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.175 Year 16 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 18 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 19 3.174 3.174 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 Year 22 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 23 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.175 3.175 Year 24 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 Year 25 3.174 3.175 3.175 3.175 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 Year 30 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 31 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.249 3.175 Year 32 1.720 1.984 2.513 2.778 3.042 3.175 3.174 3.175 3.174 3.174 0.132 0.926 1.455 Year 33 0.397 0.661 1.190 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 4 Month 5 Month 6 Month 8 Month 10 Month 1 Month 2 Month 3 Month 7 Month 9 Month 11 Month 12 Year1 2.247% 1.819% 1.605% 1.177% 0.963% 2.461% 2.033% 1.391% 0.749% 0.535% 0.321% 0.107% 2.564 2.564 2.564 2.564 Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461 Required information [The following information applies to the questions displayed below.] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. Calculate the allowable depreciation for year 1 (ignore the $179 expense and bonus depreciation). Depreciation deduction Required information [The following information applies to the questions displayed below] Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 765 miles on the four-wheeler that he bought on January 15 for $6,500. Of the miles driven, only 175 miles were for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. (Use MACRS Table 1. Table 2. Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. Calculate the allowable depreciation for year 2 if total miles were 930 and personal use miles were 400 (ignore the $179 expense and bonus depreciation) Depreciation deduction Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year 1 14.29% 33.33% 20.00% 10.00% 5.00% 3.750% Year 2 44.45 32.00 24.49 18.00 9.50 7.219 Year 3 14.81 14.40 6.677 19.20 17.49 8.55 Year 4 6.177 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 5.713 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 6.55 8.93 5.90 4.888 Year S 5.90 4.522 4.46 6.55 Year 9 5.91 6.56 4.462 Year 10 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 4.461 5.90 Year 15 5.91 4.462 Year 16 2.95 4.461 Year 17 4.462 Year 18 4.461 Year 19 4.462 Year 20 4.461 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 7-Year 5-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 15.60 15.31 Year 3 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 1.09 Year 8 TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 11.37 Year 5 8.87 Year 6 4.26 8.87 8.87 Year 7 Year S 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% 34.00 25.51 Year 2 Year 3 20.40 18.22 12.24 13.02 Year 4 Year 5 11.30 9.30 8.85 Year 6 7.06 8.86 Year 7 Year S 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 27.55 38.00 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 TABLE 3 Residential Rental Property Mid-Month Convention Straight Line 27.5 Years Month Property Placed in Service Month 9Month 10 Month 11 Month 1 Month 4 Month S Month 2 Month 3 Month 5 Month 6 Month 7 Month 12 3.182% 2.576% 1.667% 1.364% Year 1 3.485% 2.879% 2.273% 1.970% 1.061% 0.758% 0.455% 0.152% Year 2-9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 Year 10 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 11 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3,637 3.637 3.636 Year 12 3.637 3.637 3.636 3.636 3.636 3.636 3,636 Year 13 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 14 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 3.637 Year 15 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 Year 16 3.637 3.637 3.636 3.636 Year 17 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 18 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 19 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 Year 20 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 Year 21 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 22 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 23 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 24 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.636 Year 25 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 Year 26 3.637 3.637 3.637 3.636 3,636 3.636 3.636 Year 27 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.637 Year 28 1.97 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.636 Year 29 0.152 0.455 0.758 1.06 1.364 1.667 TABLE 4 Nonresidential Real Property Mid-Month Convention Straight Line 31.5 Years (for assets placed in service before May 13, 1993) Month Property Placed in Service Month 1 Month 4 Month 12 Month 2 Month 3 Month 5 Month 6 Month 7 Month S Month 9 Month 10 Month 11 Year 1 1455% 1.190% 3.042% 2.778% 2.513% 2.249% 1.984% 1.720% 0.926% 0.661% 0.397% 0.132% Year 2-7 3.175 3.175 3,175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 Year S 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.175 Year 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 Year 10 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.175 3.174 3.174 3.175 3.174 3.174 3.174 3.175 Year 11 3.174 3.175 3.175 Year 12 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 13 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 14 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 15 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.175 Year 16 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 17 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 18 3.175 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.174 3.175 Year 19 3.174 3.174 3.175 3.174 Year 20 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 Year 21 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 Year 22 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 23 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.115 3.174 3.175 3.174 3.175 3.175 3.175 Year 24 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 3.174 3.175 3.174 3.174 3.174 3.175 Year 25 3.174 3.175 3.175 3.175 Year 26 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 27 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 28 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 Year 29 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.174 3.175 3.174 3.175 3.175 Year 30 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 Year 31 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 2.249 3.175 Year 32 1.720 1.984 2.513 2.778 3.042 3.175 3.174 3.175 3.174 3.174 0.132 0.926 1.455 Year 33 0.397 0.661 1.190 TABLE 5 Nonresidential Real Property Mid-Month Convention Straight Line 39 Years (for assets placed in service on or after May 13, 1993) Month Property Placed in Service Month 4 Month 5 Month 6 Month 8 Month 10 Month 1 Month 2 Month 3 Month 7 Month 9 Month 11 Month 12 Year1 2.247% 1.819% 1.605% 1.177% 0.963% 2.461% 2.033% 1.391% 0.749% 0.535% 0.321% 0.107% 2.564 2.564 2.564 2.564 Year 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 Year 40 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461