Required information The following information applies to the questions displayed below Lina purchased a new car for use in her business during 2018. 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 stated otherwise) for the automobile in 2018 and 2019 (Lina doesn't want to take bonus depreciation for -year convention for all) (Use MACRS Table 1 Table 2 2018 or 2019) in the following alternative scenarios (assuming half and Exhibit 10-10) t. The vehicle cost $91,000, and is an SUV that weighs 6,500 pounds. Business use was 100 percent Year Depreclation 2018 2019 10,000 S 16,000 Productionibnelaccouriting/spilker 10e/ch 10 table1 htm Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year7-Year 10-Year 15-Year 20-Year 33.33%| 20.00%| 14.29%| 10.00%| 5.00%| 3.750% 44.45 14.81 Year 1 Year 2 Year 3 32.00 19.20 11.52 11.52 5.76 7.219 24.49 17.49 12.49 8.93 8.92 8.93 4.46 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 6.677 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 7.41 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter Depreciation Rate for Recovery Period 5-Year 35,00% 7-Year 25.00% 21.43 15.31 10.93 8.75 8.74 8.75 1.09 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 15.60 11.01 11.01 1.38 in service during the second quarter TABLE 2b MACRS Mid-Quarter Convention: For property placed Depreciation Rate for Recovery Period 5-Year 25.00% 30 00 18.00 11.37 7-Year 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 Year 1 Year 2 Year 3 Year 4 Year 511.37 4.26 Year 6 Year 7 Year 8 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 15.00% 34.00 7-Year 10.71% 25.51 18.22 13.02 Year 1 Year 2 Year 320.40 Year 4 Year 5 Year 6 Year 7 12.24 11.30 7.06 8.85 8.86 Year 8 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 19.68 14.06 10.04 8.73 8.73 7.64 22.80 13.68 10.94 9.58 Year 6 Year 7 Year 8
