Question

On July 15, 2019, Leo purchased and placed in service a new car that cost $73,800....

On July 15, 2019, Leo purchased and placed in service a new car that cost $73,800. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179.

If required, round your answers to the nearest dollar.

Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles.

a. What MACRS convention applies to the new car?

b. Is the automobile considered "listed property"?

c. Leo's cost recovery deduction in 2019 is $fill in the blank 3 and for 2020 is $fill in the blank 4.

Business   Accounting   
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Homework Answers

Answer #1

a.

Half years convention 5 year, 200% class apllies to the new car.

b.

Yes automobile is the listed property.

c.

Particulars $
Cost of New car $             73,800
Cost recovery deduction @ 20% 2019 $             14,760
Cost recovery deduction @32% 2020 $             23,616

For any clarification, please comment. Kindly Up Vote!

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