On July 1, 2018, Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car for business purposes as follows: 

8,000 miles in 2018, 19,000 miles in 2019, 20,000 miles in 2020, and 15,000 miles in 2021. 

Determine Brent’s basis in the business portion of the auto as of January 1,

2022, under the following assumptions:

a. Brent uses the automatic mileage method.

b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used—see Chapter 8. The recovery limitation for an auto placed in service in 2018 is as follows: $10,000 (first year), $16,000 (second year), $9,600 (third year), and $5,760 (fourth year).]