Tater Meer purchased a new car for use in her business during 2019 for $75,000. The auto was the only business asset she purchased during the year and her business was very profitable. Calculate Taters maximum depreciation deductions for the automobile in 2019 and 2020 under the following scenarios: (Use MACRS Table 1, Table 2, and Exhibit 10-10.)

Tater wants to maximize her 2019 depreciation using bonus depreciation.

2019 Amount Description (1) Automobile (2) Bonus percentage (3) MACRS depreciation (4) Luxury car limitation Depreciation deduction for 2019 $ 2020 Amount Description (1) Year 1 depreciation (2) "As if year 1 depreciation (3) Unrecovered basis (4) Remaining "as if" depreciable basis (5) Depreciation deduction for 2020 EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 Recovery Year 2 Recovery Year 3 Recovery Year 4 and after 2019 10,000** 16,000 9,600 5,760 Year Placed in Service 2018 2017 10,000* 3,160* 16,000 5.100 9,600 3,050 5,760 1,875 2016 3,160* 5.100 3,050 1.875 *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)]