Problem $9-22($Algorithmic$)($L$0.2)$

On July $1,2019,$ Brent purchases a new automobile for $$40,000.$ He uses the car $82\%$ for business and drives the car for business

purposes as follows: $11,500$ miles in $2019,28,750$ miles in $2020,32,200$ miles in $2021,$ and $23,000$ 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 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.

$2020$: $

$2021$: $

$2022$: $

Brent's adjusted basis in the auto on January $1,2023,$ 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 $2019$ is as follows: $$10,100($first year$),$ $$16,100$

$($second year$),$ $$9,700($third year$),$ and $$5,760($fourth year$).]$

Compute his depreciation deductions for year. Click here to access the depreciation table.

$2019$: $

$2020$: $

$2021$: $

$2022$: $

Brent's adjusted basis in the auto on January $1,2023,$ is $

year Rate per Mile

$202328$cents

$202226$

$202126$

$202027$

$201926$