Question: Your client is a self - employed attorney who is considering the purchase of a $ 6 5 , 0 0 0 automo - bile

Your client is a self-employed attorney who is
considering the purchase of a $65,000 automo-bile that will be used 80% for business.
a. What depreciation method and recov-ery period are used under MACRS for the
automobile?
b. What tax consequences would occur if the
business use of the automobile decreases to
50% or less in a succeeding year? Explain.

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