An old automobile is traded for a new automobile with a list price of $30,000. The old automobile has a net book value of $5,000, but the dealer has given $6,000 trade-in allowance, so the total purchase price is $24,000. The automobile will be depreciated according to the five-year MACRS class. Determine the cost basis to use and compute the MACRS percentages and the depreciation amounts for the new automobile.

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