Lina purchased a new car for use in her business during 2020. 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 2020 and 2021 (Lina doesn’t want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all)-USE MARCS a. the vehicle cost $93,000 and it is an SUV that weighs 6,500 pounds. Business use was 100 percent.

Lina purchased a new car for use in her business during 2020. 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 2020 and 2021 (Lina doesn’t want to take bonus depreciation for 2020 or 2021) in the following alternative scenarios (assuming half-year convention for all)-USE MARCS a. the vehicle cost $93,000 and it is an SUV that weighs 6,500 pounds. Business use was 100 percent.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 52P

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Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) b. The vehicle cost $92,000, and business use is 100 percent. Depreciation deduction Year 2021 2022
Lina purchased a new car for use in her business during 2019. 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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): e. The vehicle cost $80,000, and she used it 20 percent for business. Answer is not complete. Year Depreciation deduction 2019 2020 S 3,200
. Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all ): a) The vehicle cost $35,000, and business use is 100 percent (ignore §179 expense). b) The vehicle cost $80,000, and business use is 100 percent. c) The vehicle cost $80,000, and she used it 80 percent for business. d) The vehicle cost $80,000, and she used it 80 percent for business. She sold it on March 1 of year 2. e) The vehicle cost $80,000, and she used it 20 percent for business. f) The vehicle cost $80,000 and is an SUV that weighs 6, 500 pounds. Business use was 100 percent.
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) 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 a (Algo) a. The vehicle cost $35,500, and business use is 100 percent (ignore $179 expense). Year Depreciation deduction 2021 $ 0 2022 $ Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation…
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) d. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Depreciation deduction Year 2021 2022
TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarter TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 1137 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7.06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) The vehicle cost $74,000, and it is an SUV that weighs 6,500 pounds. Business use was 100 percent. Year Depreciation Deduction 2021 2022
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) d. The vehicle cost $92,000, and she used it 80 percent for business. She sold it on March 1 of year 2. X Answer is complete but not entirely correct. Depreciation deduction Year 2021 $ 14,560 X 2022 $ 13,120 X
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) a. The vehicle cost $39,000, and business use is 100 percent (ignore §179 expense). Year Depreciation Deduction 2021 2022 b. The vehicle cost $80,800, and business use is 100 percent. Year Depreciation Deduction 2021 2022 c. The vehicle cost $80,800, and she used it 80 percent for business. Year Depreciation Deduction 2021 2022 d. The vehicle cost $80,800, and she used it 80 percent for business. She sold it on March 1 of year 2. Year Depreciation…
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) The vehicle cost $30,800, and business use is 100 percent (ignore §179 expense).
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10. a. The vehicle cost $34,000, and business use is 100 percent (ignore §179 expense). Calculate for 2021 & 2022 b. The vehicle cost $90,000, and business use is 100 percent. Calculate for 2021 & 2022 c. The vehicle cost $90,000, and she used it 80 percent for business. Calculate for 2021 and 2022. D. The vehicle cost $90,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Calculate for 2021 & 2022. E. The vehicle cost $90,000, and she used it 20 percent…
Lina purchased a new car for use in her business during 2021. 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 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for allI): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $92,000, and she used it 20 percent for business. Depreciation deduction Year 2021 2022