Exercise 8-25 (Algorithmic) (LO. 4) On April 5, 2021, Kinsey places in service a new automobile that cost $66,500. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 75% for business and 25% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1: $10,100; year 2: $16,100. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 2021: 9,975 X 2022: 12,000 X Feedback Check My Work Limits exist on MACRS deductions for automobiles and other listed property that are used for both personal and business purposes. If the listed property is predominantly used for business, the taxpayer can use the MACRS tables to recover the cost. In cases where the property is not predominantly used for business, the cost is recovered using the straight-line method