Your client is a self-employed attorney who is considering the purchase of a $32,000 automobile that will be used 80% of the time for business and a $4,000 personal computer that will be used 100% of the time for business, but is located in his home.
a. What depreciation methods and recovery periods may be used under MACRS for the automobile and the personal computer?
b. How would your answer to Part a change if your client were an employee and the computer and automobile were not required as a condition of employment?
c. What tax consequences occur in Part a if the business use of the personal computer or the automobile decreases to 50% or less in a succeeding year? Explain.