On July 1, 2017, Brent purchases a new automobile for $59,500. He uses the car 88% for business and drives the car as follows: 11,500 miles in 2017, 28,750 miles in 2018, 32,200 miles in 2019, and 23,000 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: S 2018: S_ 2019: S 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: S 2019: S 2020: $_ Brent's adjusted basis in the auto on January 1, 2021, is S
On July 1, 2017, Brent purchases a new automobile for $59,500. He uses the car 88% for business and drives the car as follows: 11,500 miles in 2017, 28,750 miles in 2018, 32,200 miles in 2019, and 23,000 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: S 2018: S_ 2019: S 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: S 2019: S 2020: $_ Brent's adjusted basis in the auto on January 1, 2021, is S
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On July 1, 2017, Brent purchases a new automobile for $59,500. He uses the car 88% for business and drives the car
as follows: 11,500 miles in 2017, 28,750 miles in 2018, 32,200 miles in 2019, and 23,000 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: S
2018: S_
2019: S
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: S
2019: S
2020: $_
Brent's adjusted basis in the auto on January 1, 2021, is S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F745d04e3-1f31-4d44-b348-0fc12f8c7a74%2F4cbec98d-45b0-4f9b-a3a4-f555812b25cf%2Fpbfqiq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On July 1, 2017, Brent purchases a new automobile for $59,500. He uses the car 88% for business and drives the car
as follows: 11,500 miles in 2017, 28,750 miles in 2018, 32,200 miles in 2019, and 23,000 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: S
2018: S_
2019: S
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: S
2019: S
2020: $_
Brent's adjusted basis in the auto on January 1, 2021, is S
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education