Tables given Required information The following information applies to the questions displayed below ) Lina purchased a new car for use in her business during 2019 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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half year convention for all) (Use MACRS Table 1, Table 2, and Exhibit 10 10 ) a The vehicle cost $34,200 and business use is 100 percent (ignore $179 expense) Year Depreciation deduction 2019 2020 b The vehicle cost $91,000, and business use is 100 percent Year Depreciation deduction 2019 2020 c The vehicle cost $91,000, and she used it 80 percent for business Year Depreciation deduction 2019 2020 d The vehicle cost $91,000, and she used it 80 percent for business She sold it on March 1 of year 2 Year Depreciation deduction 2019 2020 e The vehicle cost $91,000, and she used it 20 percent for business Year Depreciation deduction 2019 2020 f The vehicle cost $91,000, and is an SUV that weighs 6,500 pounds Business use was 100 percent Year Depreciation deduction 2019 2020 Table 1 MACRS Half Year Convention Depreciation Rate for Recovery Period 5 Year 7 Year 10 Year 15 Year 3 Year 20 Year Year 1 33 33 20 00 14 29 10 00 5 00 3 750 Year 2 44 45 32 00 24 49 18 00 9 50 7 219 Year 3 14 81 19 20 17 49 14 40 8 55 6 677 Year 4 7 41 11 52 12 49 11 52 7 70 6 177 Year 5 11 52 8 93 9 22 6 93 5 713 Year 6 5 76 8 92 7 37 6 23 5 285 Year 7 8 93 6 55 5 90 4 888 Year 8 4 46 6 55 5 90 4 522 Year 9 6 56 5 91 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 5 90 4 461 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 5 Year 7 Year Year 1 35 00 25 00 Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 26 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 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention For property placed in service during the third quarter 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 Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 20 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 38 00 27 55 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 EXHIBIT 10 10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 10,000 16,000 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000 16,000 9,600 5,760 3,160 5,100 3,050 1,875 3,160 5,100 3,050 1,875 9,600 5,760 As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019 $8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k)(2)(F) Required information The following information applies to the questions displayed below ) Lina purchased a new car for use in her business during 2019 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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half year convention for all) (Use MACRS Table 1, Table 2, and Exhibit 10 10 ) a The vehicle cost $34,200 and business use is 100 percent (ignore $179 expense) Year Depreciation deduction 2019 2020 b The vehicle cost $91,000, and business use is 100 percent Year Depreciation deduction 2019 2020 c The vehicle cost $91,000, and she used it 80 percent for business Year Depreciation deduction 2019 2020 d The vehicle cost $91,000, and she used it 80 percent for business She sold it on March 1 of year 2 Year Depreciation deduction 2019 2020 e The vehicle cost $91,000, and she used it 20 percent for business Year Depreciation deduction 2019 2020 f The vehicle cost $91,000, and is an SUV that weighs 6,500 pounds Business use was 100 percent Year Depreciation deduction 2019 2020 Table 1 MACRS Half Year Convention Depreciation Rate for Recovery Period 5 Year 7 Year 10 Year 15 Year 3 Year 20 Year Year 1 33 33 20 00 14 29 10 00 5 00 3 750 Year 2 44 45 32 00 24 49 18 00 9 50 7 219 Year 3 14 81 19 20 17 49 14 40 8 55 6 677 Year 4 7 41 11 52 12 49 11 52 7 70 6 177 Year 5 11 52 8 93 9 22 6 93 5 713 Year 6 5 76 8 92 7 37 6 23 5 285 Year 7 8 93 6 55 5 90 4 888 Year 8 4 46 6 55 5 90 4 522 Year 9 6 56 5 91 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 5 90 4 461 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 5 Year 7 Year Year 1 35 00 25 00 Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 26 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 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention For property placed in service during the third quarter 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 Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 20 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 38 00 27 55 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 EXHIBIT 10 10 Automobile Depreciation Limits Year Placed in Service 2019 2018 2017 2016 10,000 16,000 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000 16,000 9,600 5,760 3,160 5,100 3,050 1,875 3,160 5,100 3,050 1,875 9,600 5,760 As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019 $8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k)(2)(F)

Question

Tables given   Required information  The following information applies to the questions displayed below ) Lina purchased a new car for use in her business during 2019  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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half year convention for all)  (Use MACRS Table 1, Table 2, and Exhibit 10 10 ) a  The vehicle cost $34,200 and business use is 100 percent (ignore $179 expense)  Year Depreciation deduction 2019 2020 b  The vehicle cost $91,000, and business use is 100 percent  Year Depreciation deduction 2019 2020 c  The vehicle cost $91,000, and she used it 80 percent for business  Year Depreciation deduction 2019 2020 d  The vehicle cost $91,000, and she used it 80 percent for business  She sold it on March 1 of year 2  Year Depreciation deduction 2019 2020 e  The vehicle cost $91,000, and she used it 20 percent for business  Year Depreciation deduction 2019 2020 f  The vehicle cost $91,000, and is an SUV that weighs 6,500 pounds  Business use was 100 percent  Year Depreciation deduction 2019 2020 Table 1 MACRS Half Year Convention Depreciation Rate for Recovery Period 5 Year 7 Year 10 Year 15 Year 3 Year 20 Year Year 1 33 33  20 00  14 29  10 00  5 00  3 750  Year 2 44 45 32 00 24 49 18 00 9 50 7 219 Year 3 14 81 19 20 17 49 14 40 8 55 6 677 Year 4 7 41 11 52 12 49 11 52 7 70 6 177 Year 5 11 52 8 93 9 22 6 93 5 713 Year 6 5 76 8 92 7 37 6 23 5 285 Year 7 8 93 6 55 5 90 4 888 Year 8 4 46 6 55 5 90 4 522 Year 9 6 56 5 91 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 5 90 4 461 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 5 Year 7 Year Year 1 35 00  25 00  Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 26 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 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention  For property placed in service during the third quarter 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  Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 20 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 38 00 27 55 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 EXHIBIT 10 10 Automobile Depreciation Limits Year Placed in Service 2019  2018 2017 2016 10,000   16,000 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000  16,000 9,600 5,760 3,160  5,100 3,050 1,875 3,160  5,100 3,050 1,875 9,600 5,760  As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019   $8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k)(2)(F)         Required information  The following information applies to the questions displayed below ) Lina purchased a new car for use in her business during 2019  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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half year convention for all)  (Use MACRS Table 1, Table 2, and Exhibit 10 10 ) a  The vehicle cost $34,200 and business use is 100 percent (ignore $179 expense)  Year Depreciation deduction 2019 2020 b  The vehicle cost $91,000, and business use is 100 percent  Year Depreciation deduction 2019 2020 c  The vehicle cost $91,000, and she used it 80 percent for business  Year Depreciation deduction 2019 2020 d  The vehicle cost $91,000, and she used it 80 percent for business  She sold it on March 1 of year 2  Year Depreciation deduction 2019 2020 e  The vehicle cost $91,000, and she used it 20 percent for business  Year Depreciation deduction 2019 2020 f  The vehicle cost $91,000, and is an SUV that weighs 6,500 pounds  Business use was 100 percent  Year Depreciation deduction 2019 2020 Table 1 MACRS Half Year Convention Depreciation Rate for Recovery Period 5 Year 7 Year 10 Year 15 Year 3 Year 20 Year Year 1 33 33  20 00  14 29  10 00  5 00  3 750  Year 2 44 45 32 00 24 49 18 00 9 50 7 219 Year 3 14 81 19 20 17 49 14 40 8 55 6 677 Year 4 7 41 11 52 12 49 11 52 7 70 6 177 Year 5 11 52 8 93 9 22 6 93 5 713 Year 6 5 76 8 92 7 37 6 23 5 285 Year 7 8 93 6 55 5 90 4 888 Year 8 4 46 6 55 5 90 4 522 Year 9 6 56 5 91 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 5 90 4 461 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 5 Year 7 Year Year 1 35 00  25 00  Year 2 26 00 21 43 Year 3 15 60 15 31 Year 4 11 01 10 93 Year 5 11 01 8 75 Year 6 1 38 8 74 Year 7 8 75 Year 8 1 09 TABLE 26 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 Year 5 11 37 8 87 Year 6 4 26 8 87 Year 7 8 87 Year 8 3 34 TABLE 2c MACRS Mid Quarter Convention  For property placed in service during the third quarter 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  Year 2 34 00 25 51 Year 3 20 40 18 22 Year 4 12 24 13 02 Year 5 11 30 9 30 Year 6 7 06 8 85 Year 7 8 86 Year 8 5 53 TABLE 20 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 38 00 27 55 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 EXHIBIT 10 10 Automobile Depreciation Limits Year Placed in Service 2019  2018 2017 2016 10,000   16,000 Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 10,000  16,000 9,600 5,760 3,160  5,100 3,050 1,875 3,160  5,100 3,050 1,875 9,600 5,760  As of press date, the IRS had not released the 2019 limitations for automobiles, so throughout the chapter we use the same limitations as in 2018 for 2019   $8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k)(2)(F)

Accepted Answer

The Answer is in the image, click to view ...

Question

Tables given ! Required information [The following information applies to the questions displayed below.) Lina purchased a new car for use in her business during

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Accounting concepts and applications

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question