### Scenario DescriptionLina purchased a new car for use in her business during 2021. The car was the only business asset she purchased that year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including the §179 expense, unless stated otherwise) for the automobile in 2021 and 2022. Lina opts not to take bonus depreciation for 2021 or 2022. The calculations assume a half-year convention for all, using MACRS depreciation tables.### Vehicle Details- **Cost of Vehicle:** $92,000- **Business Use Percentage:** 80%- **Date Sold:** March 1, Year 2### Depreciation Deduction Table| Year | Depreciation Deduction ||------|-------------------------|| 2021 | || 2022 | |This table is used to calculate the depreciation deductions for the respective years. The calculations should use the MACRS Table 1 and Table 2 and consider the Exhibits provided for assumptions and limits on deductions.

As per luxury auto cap , maximum depreciation allowed is determined for luxury vehicles. We assume…

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.

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.

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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