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Tater Meer purchased a new car for use in her business during 2020 for $75,000. The auto was the only business asset she purchased during
Tater Meer purchased a new car for use in her business during 2020 for $75,000. The auto was the only business asset she purchased during the year, and her business was very profitable. Calculate Tater's maximum depreciation deductions for the automobile in 2020 and 2021 under the following scenarios: (Use MACRS Table 1, Table 2, and Exhibit 10-10.) b. Tater wants to maximize her 2020 depreciation using bonus depreciation. 2020 Amount $ 75,000 Description (1) Original basis of auto (2) Bonus percentage (3) MACRS depreciation (4) Luxury car limitation Depreciation deduction for 2020 $ 0 $ 0 2021 Amount Description (1) 2020 depreciation (2) Adjusted depreciable basis (3) Depreciation rate 2021 calculated depreciation before limitation (5) Depreciation deduction for 2021 %
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