Problem 8-42 (Algorithmic) (LO. 4)On February 1, 2021, Leo purchased and placed in service a new car that cost $56,400. The business use percentage for the car is always100%. He does not take the additional first-year depreciation or any § 179.If required, round your answers to the nearest dollar.Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles.a. What MACRS convention applies to the new car?Half-yearb. Is the automobile considered "listed property"?Yes ✔c. Leo's cost recovery deduction in 2021 is sand for 2022 is s10,829 X.

Requirement:-c Calculation of cost recovery in 2021 as follows under:- Note:- Section 179…

Answered: c. Leo's cost recovery deduction in…

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c. Leo's cost recovery deduction in 2021 is s and for 2022 is s 10,829 X.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Problem 8-42 (Algorithmic) (LO. 4)
On February 1, 2021, Leo purchased and placed in service a new car that cost $56,400. The business use percentage for the car is always
100%. He does not take the additional first-year depreciation or any § 179.
If required, round your answers to the nearest dollar.
Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles.
a. What MACRS convention applies to the new car?
Half-year
b. Is the automobile considered "listed property"?
Yes ✔
c. Leo's cost recovery deduction in 2021 is s
and for 2022 is s
10,829 X.

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