Sid purchased an automobile for personal use on January 18, 2019 for \($30,000.\) On January 1, 2023 (when its fair market value is \($18,000),\) Sid starts a small business and begins to use the automobile exclusively in the business. The automobile’s MACRS recovery period is five years.

a. What is the automobile’s basis for depreciation when converted to business use in 2023?

b. What is Sid’s depreciation deduction for 2023? Assume that Sid does not claim Sec. 179 expensing or bonus depreciation and that the half-year convention applies.