Tax Problem

On February 2, 2018, Katie purchased and placed in service a new$18,500 car. The car was used 65% for business, 5% for productionof income, and 30% for personal use in 2018. In 2019, the usagechanged to 40% for business, 15% for production of income, and 45%for personal use. Katie did not elect immediate expensingunder § 179. She elects not to take additional first-yeardepreciation.

If required, round your answers to the nearest dollar.

Click here to access the cost recovery tables of the textbook.Assume the following luxury automobile limitations: year 1:$10,000; year 2: $16,000.

a. The cost recovery deduction taken in 2018was $.

b. The cost recovery deduction for 2019 is$.

c. The cost recovery recapture, if any, in 2019is $.

Other similar questions posted and answered are wrong.