[The following information applies to the questions displayed below.]

Lina purchased a new car for use in her business during 2020. 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 2020 and 2021 (Lina doesnt want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.)

Problem 10-67 Part d (Algo)

d. The vehicle cost $79,000, and she used it 80 percent for business. She sold it on March 1 of year 2.

Problem 10-67 Part e (Algo)

e. The vehicle cost $79,000, and she used it 20 percent for business.

Problem 10-67 Part f (Algo)

f. The vehicle cost $79,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent.

Problem 10-67 Part d (Algo) d. The vehicle cost $79,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Year Depreciation deduction 2020 2021 Problem 10-67 Part e (Algo) e. The vehicle cost $79,000, and she used it 20 percent for business. Year Depreciation deduction 2020 2021 Problem 10-67 Part f (Algo) f. The vehicle cost $79,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent. Year 2020 Depreciation deduction 2021 [The following information applies to the questions displayed below.) Lina purchased a new car for use in her business during 2020. 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 2020 and 2021 (Lina doesn't want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 20-Year Year 1 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 11.52 8.93 9.22 6.93 5.713 Year 5 Year 6 Year 7 5.76 8.92 7.37 6.23 5.285 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 Year 8 Year 9 Year 10 6.56 5.91 4.462 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 4.462 Year 19 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 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 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 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 Recovery Year 1 2 3 4 and after 2020* 10,100** 16,100 9,700 5,760 Year Placed in Service 2019 2018 10,100* 10,000* 16,100 16,000 9,700 9,600 5,760 5,760 2017 3,160* 5.100 3,050 1,875 *As of press date, the IRS had not released the 2020 limitations for automobiles, so throughout the chapter we use the same limitations as in 2019 for 2020. **$8,000 additional depreciation is allowed when bonus depreciation is claimed ($168(k) (2)(F)]