On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 86%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 86% for business and drives the car as follows: 6,000 miles in 2017, 15,000 miles in 2018, 16,800 miles in 2019, and 12,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ 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. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).] Compute his depreciation deductions for year. Click here to access the depreciation table. 2017: 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ On July 1, 2017, Brent purchases a new automobile for $35,500. He uses the car 86% for business and drives the car as follows: 6,000 miles in 2017, 15,000 miles in 2018, 16,800 miles in 2019, and 12,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ 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. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).] Compute his depreciation deductions for year. Click here to access the depreciation table. 2017: 2018: $ 2019: 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $
Expert Answer:
Answer rating: 100% (QA)
Answer A Year Answer 2017 1290 2018 3225 2019 3756 2020 2786 Adjusted Basis on January 1 2021 ... View the full answer
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
Students also viewed these accounting questions
-
On July 1, 2010, Rex purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2010, 19,000 miles in 2011, 20,000 miles in 2012, and...
-
On July 1, 2009, Rex purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2009, 19,000 miles in 2010, 20,000 miles in 2011, and...
-
On July 1, 2012, Rex purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2012, 19,000 miles in 2013, 20,000 miles in 2014, and...
-
Why do countries respond differently in terms of flexibility and worklife balance to what seem similar economic pressures?
-
Consider a four-year project with the following information: Initial fixed asset investment = $480,000; straight-line depreciation to zero over the four-year life; zero salvage value ; price = $37;...
-
Graph the data in the following table using a divided bar graph. State Gasoline Prices, April 2017 Price Before Tax ($ per gallon) State California Hawaii Michigan New York Texas 2.41 2.42 1.90 1.83...
-
The linkage is made using two A992 steel rods, each having a circular cross section. If each rod has a diameter of \(\frac{3}{4}\) in., determine the largest load it can support without causing any...
-
When set at the standard position, Autopitch can throw hard balls toward a batter at an average speed of 60 mph. Autopitch devices are made for both major- and minor-league teams to help them improve...
-
What are three top nutritional considerations I should keep in mind when caring for a person with Autism?
-
Sandra works in British Columbia and is paid on a semi-monthly basis. She has a claim code of 1 on both her TD1 and TD1BC. She has the following types of earnings, benefits & deductions. She will...
-
Compute the convolution for the following non-casual sequences: (iii) x(n)= {-5 4 1 3 0} h(n)= {1 3 0 6 7} for (iii) use a user defined function to do the convolution.
-
Given matrix A shown below, find -4A. Give your answer as a matrix using the matrix tool. Provide your answer below: 3 -2 A = 0 0 2 -4 3 5
-
Divide and simplify: - x - 4 x+1x6 x+10x+21 x - 49
-
Multiply. (4t-9)(4t+9)
-
-4 4 Add: + x+5 x - 3
-
Subtract and simplify: 2x +4 10x1 9 9
-
5 The gravitational force, f, between two objects is inversely proportional to the square of the distance, d, between them. When d=100,f=20. Write an equation connecting f and d and use it to find...
-
In the synthesis of the keto acid just given, the dicarboxylic acid decarboxylates in a specific way; it gives Explain. HO rather than HO
-
What type of activity by a church is likely to be subject to the unrelated business income tax? What factors must be present for this activity to be classified as an unrelated trade or business?
-
Jennifer and Jamie are starting a business and have asked you for advice about whether they should form a partnership, a corporation, or some other type of entity. Prepare a list of questions you...
-
In January 2014, Pelican, Inc., established an allowance for uncollectible accounts (bad debt reserve) of $70,000 on its books and increased the allowance by $120,000 during the year. As a result of...
-
Derive the equations of motion, using Newton's second law of motion, for each of the systems shown in Figs. 6.22. M, cos wt G 15 G3 13 ka 03 4 kn 12 G k3 16 G6 G Number of teeth on gear G, n, (i = 1...
-
Derive the equations of motion, using Newton's second law of motion, for each of the systems shown in Figs. 6.21. Pulley, mass M, mass moment of inertia Jo 3r 3m T x(1) F(t) 2k 000 T x2(1) m T X3(1)...
-
A simplified vibration analysis of an airplane considers bounce and pitch motions (Fig. 6.24(a)). For this, a model consisting of a rigid bar (corresponding to the body of the airplane) supported on...
Study smarter with the SolutionInn App