Question

Exercise 8-27 (Algorithmic) (LO. 4) On April 5, 2019, Kinsey places in service a new automobile that cost 576,250. He does not elect $ 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 90% for business and 10% for personal use in each tax year. Kinsey chooses the MACRS 200% declining-balance method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. Assume the following luxury automobile limitations: year 1: $10,000; year 2: 516,000. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 2019: 2020:

Answer 1

Ansel As per the given data - Kinsey places in service of a auto mobile (new that cost $76,250 on April 5,2018. He does not elect $179 exped sing. And also be elects not to take any additional first year depreciation. - I - Next, the se car car is is used used 90% 90% for business and the remaining 10% for personal use in each tax year. He chooses the MACRO 2007). declining. balance method of cost recovery the auto is a 5-year asset). - - The assumptions limitation are too luxury automobile you do coure rear 1 & 10000 year 2 $ 16000 information lets Calculate total from above depriciation

MARS method Year MACRS Calc. MACRCS Recovery Depricia Anton limitation - tion 10000 x90 9000 2020 76250x 0-2000 13729 x 90%. 76250x 0.32000 21960 90/ 0 16000 x 90% Tuu