Mileage depreciation each year.

On July i. 2019, Brent purchases a new automobile for $40,000. He uses the car for business and drives the car for business pwposes as follows: 8,000 in 2019, 19,000 in 2020, 20,000 miles in 2021, and 15,000 miles in 2022. Determine Brent's basis in the business portion of the auto as of January 1, 2023. under the following assumptions: If required, round your answers to the nearest dollar. a. Brent uses the automatic method. Compute his basis adjustments for depreciation for each vear. Click here to access the basis adjustment table. 2019: 2020: 2022: 12,800 X Brent's adjusted basis in the auto on January 1, 2023, is 6,912 b. Brent the actual COSt method. (Assume that no 5 179 expensing is Claimed and that 200% declining-balance COSt recovery With the half-year convention is used. The recovery limitation for an auto placed in service in 2019 is as follows: $10,100 (first year), $16,100 (second year), $9, 7C") (third year), and $5,760 (fourth Compute his depreciation deductions for year. Click here to access the depreciation table. 2019: 2020: 2021: 2022: 8,000 x 5,427.20 x 2,968.29 x adjusted basis in the auto on January I , 2023, 13,364.51 2023 2022 2021 2020 7010 Rate p Mile 27 cents 26