Question: This is one question but has three parts. I completed Part A myself, but I need help with Part B and Part C. Please bold
This is one question but has three parts. I completed Part A myself, but I need help with Part B and Part C. Please bold final answer, and show work. Thank you!

^ The answers cannot be 2022: 6440 and 2023:10304



![information applies to the questions displayed below.] Lina purchased a new car](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/66fbd89030d8e_00766fbd88fc82cf.jpg)

Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2022. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including 179 expense unless stated otherwise) for the automobile in 2022 and 2023 (Lina doesn't want to take bonus depreciation for 2022 or 2023) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) Problem 10-67 Part b (Algo) b. The vehicle cost $81,000, and business use is 100 percent. Required information Problem 10-67 (LO 10-3) (Algo) [The following information applies to the questions displayed below.] Lina purchased a new car for use in her business during 2022. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including 179 expense unless stated otherwise) for the automobile in 2022 and 2023 (Lina doesn't want to take bonus depreciation for 2022 or 2023 ) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1 , Table 2, and Exhibit 10-10.) Problem 10-67 Part c (Algo) c. The vehicle cost $81,000, and she used it 80 percent for business. Table 1 MACRS Half-Year Convention TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 15.00% & 10.71% \\ \hline Year 2 & 34.00 & 25.51 \\ \hline Year 3 & 20.40 & 18.22 \\ \hline Year 4 & 12.24 & 13.02 \\ \hline Year 5 & 11.30 & 9.30 \\ \hline Year 6 & 7.06 & 8.85 \\ \hline Year 7 & & 8.86 \\ \hline Year 8 & & 5.53 \\ \hline \end{tabular} TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Depreciation Rate for Recovery Period } \\ \hline & 5-Year & 7-Year \\ \hline Year 1 & 5.00% & 3.57% \\ \hline Year 2 & 38.00 & 27.55 \\ \hline Year 3 & 22.80 & 19.68 \\ \hline Year 4 & 13.68 & 14.06 \\ \hline Year 5 & 10.94 & 10.04 \\ \hline Year 6 & 9.58 & 8.73 \\ \hline Year 7 & & 8.73 \\ \hline Year 8 & & 7.64 \\ \hline \end{tabular} EXHIBIT 10-10 Automobile Depreciation Limits * As of press date, the IRS had not released the 2022 limitations for automobiles, so throughout the chapter we use the same limitations as in 2021 for 2022. $8,000 additional depreciation is allowed when bonus depreciation is claimed [$168(k)(2)(F)]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
