On March 30, 2021, Leo purchased and placed in service a new car that cost $55,200....

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On March 30, 2021, Leo purchased and placed in service a new car that cost $55,200. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recovery deduction in 2021 is $ and for 2022 is $1 Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 3-Year (200% DB) 5-Year (200% DB) Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 11.52 5.76 *Switchover to straight-line depreciation. 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Exhibit 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table * ) 3-Year First Quarter Second Quarter Recovery Year 1 2 Recovery Year 1 2 58.33 27.78 First Quarter 35.00 26.00 41.67 38.89 5-Year Second Quarter 25.00 30.00 7-Year Third Quarter 25.00 50.00 Third Quarter 15.00 34.00 Fourth Quarter 8.33 61.11 Fourth Quarter 5.00 38.00 + Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 3-Year (200% DB) 5-Year (200% DB) Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 11.52 5.76 *Switchover to straight-line depreciation. 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention * For Property Placed in Service after December 31, 1986 MACRS Class 3-year 5-year 7-year 10-year 15-year 20-year Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS). % First Recovery Year 16.67 10.00 7.14 5.00 3.33 Other Recovery Years Last Recovery Year % % 2.50 Years 2-3 2-5 2-7 2-10 2-15 2-20 33.33 20.00 14.29 10.00 6.67 5.00 Year 4 6 8 11 16 21 16.67 10.00 7.14 5.00 3.33 2.50 Exhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table*) 5-Year 9.5-Year 150% 150% Recovery Year 1 2 3 4 6 7 8 9 10 11 123 3-Year 150% 25.00 37.50 25.00** 12.50 15.00 25.50 17.85 16.66** 16.66 8.33 7-Year 150% 10.71 19.13 15.03 12.25** 12.25 12.25 12.25 6.13 7.89 14.54 12.25 10.31 9.17** 9.17 9.17 9.17 9.17 9.16 10-Year 150% 7.50 13.88 11.79 10.02 8.74** 8.74 8.74 8.74 8.74 8.74 4.37 12-Year 150% 6.25 11.72 10.25 8.97 7.85 7.33** 7.33 7.33 7.33 7.33 7.32 7.33 3.66 *The figures in this table are taken from the official table that appears in Rev.Proc. 87-57. Because of its length, the complete table is not presented. **Switchover to straight-line depreciation. Exhibit 8.7 ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) * Recovery Year 3-Year 5-Year 7-Year 10-Year 16.67 10.00 33.33 20.00 20.00 20.00 20.00 10.00 1 2 3 4 5 6 7 8 لیا 33.33 16.67 7.14 14.29 14.29 14.29 14.29 14.29 14.29 7.14 5.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 12-Year 4.17 8.33 8.33 8.33 8.33 8.33 8.34 8.33 + For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 10 11 3.485 3.182 2.576 2.273 1.970 3.636 3.636 3.636 2.879 3.636 3.636 3.636 3.637 3.637 3.637 1.970 2.273 2.576 2.879 3.182 0.000 0.000 0.000 0.000 0.000 3.637 3.637 1 2-18 19-27 28 29 1 2-19 20-31 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 9 10 11 32 33 3.042 2.778 2.513 3.175 3.175 3.175 3.174 1.720 0.000 1 2-39 40 9 1.364 1.061 0.758 0.455 3.636 3.636 3.636 3.636 1.667 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.485 3.636 3.636 3.636 3.636 3.636 0.000 0.152 0.455 0.758 1.061 1.364 1 2.461 2.564 0.107 3.175 3.174 3.174 3.174 1.984 2.249 2.513 2.778 0.000 0.000 0.000 0.000 2.249 1.984 1.720 3.175 3.175 3.175 3.174 3.174 3.174 3.042 3.175 0.000 0.132 1.455 1.190 3.175 3.174 3.175 0.397 0.926 0.661 3.175 3.175 3.174 3.174 3.174 3.175 3.175 3.175 0.661 0.926 1.190 0.397 3.175 12 0.152 3.636 3.637 3.636 1.667 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service): Year(s) 2 3 4 5 6 7 8 9 10 11 1.177 0.963 0.749 2.247 2.033 1.819 1.605 1.391 2.564 2.564 2.564 0.749 0.963 1.177 1.391 1.605 1.819 2.564 2.564 2.564 2.564 2.564 0.321 0.535 0.535 0.321 2.564 2.564 2.033 2.247 12 0.132 3.175 3.174 3.175 1.455 12 0.107 2.564 2.461 Date Placed in Service 2021* 2019-2020 2018 First Year $10,200 $10,100 $10,000 Second Year $16,400 $16,100 $16,000 Third Year $9,800 $9,700 $9,600 Fourth and Later Years $5,860 $5,760 $5,760 "Because the 2022 indexed amounts were not available when we published, the 2021 amounts are used in the Examples and end-of-chapter problem materials. On March 30, 2021, Leo purchased and placed in service a new car that cost $55,200. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car? Half-year b. Is the automobile considered "listed property"? Yes c. Leo's cost recovery deduction in 2021 is $ and for 2022 is $1 Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 3-Year (200% DB) 5-Year (200% DB) Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 11.52 5.76 *Switchover to straight-line depreciation. 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Exhibit 8.4 MACRS Accelerated Depreciation for Personal Property Assuming Mid-Quarter Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table * ) 3-Year First Quarter Second Quarter Recovery Year 1 2 Recovery Year 1 2 58.33 27.78 First Quarter 35.00 26.00 41.67 38.89 5-Year Second Quarter 25.00 30.00 7-Year Third Quarter 25.00 50.00 Third Quarter 15.00 34.00 Fourth Quarter 8.33 61.11 Fourth Quarter 5.00 38.00 + Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 3-Year (200% DB) 5-Year (200% DB) Recovery Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 11.52 5.76 *Switchover to straight-line depreciation. 7-Year (200% DB) 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Exhibit 8.5 MACRS Straight-Line Depreciation for Personal Property Assuming Half-Year Convention * For Property Placed in Service after December 31, 1986 MACRS Class 3-year 5-year 7-year 10-year 15-year 20-year Note: The last two rows of this table are used for qualified improvement property (15-year normal MACRS; 20-year ADS). % First Recovery Year 16.67 10.00 7.14 5.00 3.33 Other Recovery Years Last Recovery Year % % 2.50 Years 2-3 2-5 2-7 2-10 2-15 2-20 33.33 20.00 14.29 10.00 6.67 5.00 Year 4 6 8 11 16 21 16.67 10.00 7.14 5.00 3.33 2.50 Exhibit 8.6 Alternative Minimum Tax: 150% Declining-Balance Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table*) 5-Year 9.5-Year 150% 150% Recovery Year 1 2 3 4 6 7 8 9 10 11 123 3-Year 150% 25.00 37.50 25.00** 12.50 15.00 25.50 17.85 16.66** 16.66 8.33 7-Year 150% 10.71 19.13 15.03 12.25** 12.25 12.25 12.25 6.13 7.89 14.54 12.25 10.31 9.17** 9.17 9.17 9.17 9.17 9.16 10-Year 150% 7.50 13.88 11.79 10.02 8.74** 8.74 8.74 8.74 8.74 8.74 4.37 12-Year 150% 6.25 11.72 10.25 8.97 7.85 7.33** 7.33 7.33 7.33 7.33 7.32 7.33 3.66 *The figures in this table are taken from the official table that appears in Rev.Proc. 87-57. Because of its length, the complete table is not presented. **Switchover to straight-line depreciation. Exhibit 8.7 ADS Straight-Line for Personal Property Assuming Half-Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 (Partial Table) * Recovery Year 3-Year 5-Year 7-Year 10-Year 16.67 10.00 33.33 20.00 20.00 20.00 20.00 10.00 1 2 3 4 5 6 7 8 لیا 33.33 16.67 7.14 14.29 14.29 14.29 14.29 14.29 14.29 7.14 5.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 12-Year 4.17 8.33 8.33 8.33 8.33 8.33 8.34 8.33 + For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 10 11 3.485 3.182 2.576 2.273 1.970 3.636 3.636 3.636 2.879 3.636 3.636 3.636 3.637 3.637 3.637 1.970 2.273 2.576 2.879 3.182 0.000 0.000 0.000 0.000 0.000 3.637 3.637 1 2-18 19-27 28 29 1 2-19 20-31 For Property Placed in Service after December 31, 1986, and before May 13, 1993: 31.5-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service): Year(s) 1 2 3 4 5 6 7 8 9 10 11 32 33 3.042 2.778 2.513 3.175 3.175 3.175 3.174 1.720 0.000 1 2-39 40 9 1.364 1.061 0.758 0.455 3.636 3.636 3.636 3.636 1.667 3.636 3.637 3.637 3.637 3.637 3.637 3.637 3.485 3.636 3.636 3.636 3.636 3.636 0.000 0.152 0.455 0.758 1.061 1.364 1 2.461 2.564 0.107 3.175 3.174 3.174 3.174 1.984 2.249 2.513 2.778 0.000 0.000 0.000 0.000 2.249 1.984 1.720 3.175 3.175 3.175 3.174 3.174 3.174 3.042 3.175 0.000 0.132 1.455 1.190 3.175 3.174 3.175 0.397 0.926 0.661 3.175 3.175 3.174 3.174 3.174 3.175 3.175 3.175 0.661 0.926 1.190 0.397 3.175 12 0.152 3.636 3.637 3.636 1.667 For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is placed in Service): Year(s) 2 3 4 5 6 7 8 9 10 11 1.177 0.963 0.749 2.247 2.033 1.819 1.605 1.391 2.564 2.564 2.564 0.749 0.963 1.177 1.391 1.605 1.819 2.564 2.564 2.564 2.564 2.564 0.321 0.535 0.535 0.321 2.564 2.564 2.033 2.247 12 0.132 3.175 3.174 3.175 1.455 12 0.107 2.564 2.461 Date Placed in Service 2021* 2019-2020 2018 First Year $10,200 $10,100 $10,000 Second Year $16,400 $16,100 $16,000 Third Year $9,800 $9,700 $9,600 Fourth and Later Years $5,860 $5,760 $5,760 "Because the 2022 indexed amounts were not available when we published, the 2021 amounts are used in the Examples and end-of-chapter problem materials.

Answer rating: 100% (QA)

a The halfyear convention applies to the new car because it was placed in service in the first quarter of the year b Yes the automobile is considered ... View the full answer