Question: Problem 9-32 (Algorithmic) (LO. 2) On July 1, 2011, Rex purchases a new automobile for $52,000. He uses the car 84% for business and drives
Problem 9-32 (Algorithmic) (LO. 2) On July 1, 2011, Rex purchases a new automobile for $52,000. He uses the car 84% for business and drives the car as follows: 9,500 miles in 2011, 23,750 miles in 2012, 26,600 miles in 2013, and 19,000 miles in 2014. Determine Rex's basis in the auto as of January 1, 2015, under the following assumptions. If required, round answers to the nearest dollar.
b. Rex 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 2011 is as follows: $3,060 (first year), $4,900 (second year), $2,950 (third year), and $1,775 (fourth year).] Compute his depreciation deductions for year. Click here to access the depreciation table.
2011: $
2012: $
2013: $
2014: $
Rex's adjusted basis in the auto on January 1, 2015, is $ .
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