On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and drives the car as follows: 13,000 miles in 2017, 32,500 miles in 2018, 36,400 miles in 2019, and 26,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $
On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and drives the car as follows: 13,000 miles in 2017, 32,500 miles in 2018, 36,400 miles in 2019, and 26,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $
Chapter3: Income Sources
Section: Chapter Questions
Problem 77P: During the last five months of the year, Dwana opens a new Internet telecommunications business...
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![On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and drives the car as follows: 13,000
miles in 2017, 32,500 miles in 2018, 36,400 miles in 2019, and 26,000 miles in 2020.
Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions:
If required, round your computations to the nearest dollar.
a. Brent uses the automatic mileage method.
Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table.
2017: $
2018: $
2019: $
2020: $
Brent's adjusted basis in the auto on January 1, 2021, is $
b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the
half-year convention is used. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second
year), $3,050 (third year), and $1,875 (fourth year).]
Compute his depreciation deductions for year. Click here to access the depreciation table.
2017: $
2018: $
2019: $
2020: $
Brent's adjusted basis in the auto on January 1, 2021, is $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8354011-a539-4dd4-a237-9321c3b17a7b%2F71530a5c-9b6d-47ae-8e5e-481634da45f6%2Flh6yhj2_processed.png&w=3840&q=75)
Transcribed Image Text:On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and drives the car as follows: 13,000
miles in 2017, 32,500 miles in 2018, 36,400 miles in 2019, and 26,000 miles in 2020.
Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions:
If required, round your computations to the nearest dollar.
a. Brent uses the automatic mileage method.
Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table.
2017: $
2018: $
2019: $
2020: $
Brent's adjusted basis in the auto on January 1, 2021, is $
b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the
half-year convention is used. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second
year), $3,050 (third year), and $1,875 (fourth year).]
Compute his depreciation deductions for year. Click here to access the depreciation table.
2017: $
2018: $
2019: $
2020: $
Brent's adjusted basis in the auto on January 1, 2021, is $
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