On June 1, 2020, Irene plačes in is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car). She does not take additional first-year depreciation but instead uses the 5-year (200% DB). Determine the cost recovery deduction for 2020 and 2021.

On June 1, 2020, Irene plačes in is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car). She does not take additional first-year depreciation but instead uses the 5-year (200% DB). Determine the cost recovery deduction for 2020 and 2021.

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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On June 1, 2020, Irene places in service a new automobile that cost $45,000. The car
is used 70% for business and 30% for personal use. (Assume this percentage is
maintained for the life of the car). She does not take additional first-year
depreciation but instead uses the 5-year (200% DB). Determine the cost recovery
deduction for 2020 and 2021.

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