Question

Required Information The following information applies to the questions displayed below] Lina purchased a new car for use in her business during 2019. 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 2019 and 2020 (Lina doesn't want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2 and Exhibit 10-10.) f. The vehicle cost $50,000, and is an SUV that weighs 6.500 pounds. Business use was 100 percent. Depreciation deduction Year 2019 2020

Answer 1

Answer:

(f) Given Cost of Vehicle : $50000

Weight of the Vehicle : 6500 pounds

Business Use : 100%

Convention : Half year for MACRS purpose

Particulars	2019	2020
Sec 179 Deduction	$25000	$25000
MACRS Depreciation in full ($50000-$25000)*20%   ($50000-$25000)*32%	$5000	$8000

Total Depreciation deduction

$30000

$33000