Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

View previous attempt 11 Required information [The following information applies to the questions displayed below) Lina purchased a new car for use in her business

image text in transcribed
image text in transcribed
image text in transcribed
View previous attempt 11 Required information [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 5179 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 a) (Use MACRS Table 1, Table, and exhibit 10-10.) d. The vehicle cost $80,000, and she used it 80 percent for business. She sold it on March 1 of year 2 Year Depreciation deduction 2020 2021 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 IL37 11.97 Year 5 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 propers placed in service during the third quarter EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year 1 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 3 and after x of press done, the IRS had not released the 2020 itations for automobiles, so throughout the chaper we use the seminations as in 2019 for 2 **$8,000 additional depreciation is alloww/ when bonus depreciation is claimed 13168/)2X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Responsibility

Authors: Tom Cannon

2nd Edition

0273738739, 9780273738732

More Books

Students also viewed these Accounting questions