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 alI): (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
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 alI): (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
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 7CPA: Which statement below is correct? a. Real property is depreciated using the half-year convention. b....
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Question
![TABLE 2a MACRS Mid-Quarter Convention: For property placed in service
during the first quarter
TABLE 26 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
11.37
11.97
Year 5
1137
8.87
Year 6
4.26
8.87
Year 7
8.87
Year 8
3.34
TABLE 2e 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
1130
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%
357%
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F185af0e3-ec3f-47b9-bb7b-4ada95bc1144%2F77141b06-0ea9-44ee-b51a-0f4a29ba18c8%2Fg6y3la_processed.png&w=3840&q=75)
Transcribed Image Text:TABLE 2a MACRS Mid-Quarter Convention: For property placed in service
during the first quarter
TABLE 26 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
11.37
11.97
Year 5
1137
8.87
Year 6
4.26
8.87
Year 7
8.87
Year 8
3.34
TABLE 2e 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
1130
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%
357%
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.)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F185af0e3-ec3f-47b9-bb7b-4ada95bc1144%2F77141b06-0ea9-44ee-b51a-0f4a29ba18c8%2Fextd2lj_processed.png&w=3840&q=75)
Transcribed Image Text: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
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