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[The following information applies to the questions displayed below.) Tater Meer purchased a new car for use in her business during 2018 for $75,000. The

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[The following information applies to the questions displayed below.) Tater Meer purchased a new car for use in her business during 2018 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 2018 and 2019 under the following scenarios: (Use MACRS Table 1. Table 2, and Exhibit 10-10.) b. Tater wants to maximize her 2018 depreciation using bonus depreciation. 2018 Amount $ 75.000 Description (1) Automobile (2) Bonus percentage (3) MACRS depreciation (4) Luxury car limitation Depreciation deduction for 2018 2019 Amount Description (1) Year 1 depreciation (2) "As if year 1 depreciation (3) Unrecovered basis (4) Remaining "as ir depreciable basis (5) Depreciation deduction for 2019 Table 1 MACRS Half-Year Convention 3-Year 3 3.33% 44.45 14.81 7.41 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Depreciation Rate for Recovery Period 5-Year 7-Year 10-Year 15-Year 20-Year 20.00% 14.29% 10.00% 5.00% 3.750% 32.00 24.49 18.00 19.50 7.219 19.20 17.49 14.40 | 8.55 6.677 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.235.285 8.93 6.55 5.90 1 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarte 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 L 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarte 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 I 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 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 3 4.00 25.51 Year 3 / 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 25.00% 30.00 18.00 11.37 11.37 4.26 17.85% 23.47 16.76 11.97 8.87 8.87 8.87 3.34 TABLE 2 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 Year Placed in Service 2018 2017 2016 10,000 16,000 9,600 5,760 3,160 5,100 3,050 1,875 3,160 5,100 3,050 1,875 2015 3,160 5,100 3,050 1,875 4 and after

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