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On July $1,2019,$ Brent purchases a new automobile for $$40,000.$ He uses the car $80\%$ for business and drives the car for business

purposes as follows: $8,000$ miles in $2019,19,000$ miles in $2020,20,000$ miles in $2021,$ and $15,000$ miles in $2022.$

Determine Brent's basis in the business portion of the auto as of January $1,2023,$ under the following assumptions:

If required, round answers 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$\mathrm{.}2020$:$

$2021$: $

$2022$: $

Brent's adjusted basis in the auto on January $1,2023,$ is $

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A taxpayer has two choices in determining automobile expenses: the automatic mileage method and the actual cost method. A basis adjustment

is required if the taxpayer changes from the automatic mileage method to the actual operating cost method. The law places special limitations on

the cost recovery deduction for passenger automobiles.

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 $2019$ is as follows: $$10,100($first year$),$ $$16,100$

$($second year$),$ $$9,700($third year$),$ and $$5,760($fourth year$).]$

Compute his depreciation deductions for year. Click here to access the depreciation table.

$2019$: $ $x$

$2020$: $ $x$

$2021$: $ $x$

$2022$: $ $x$

Brent's adjusted basis in the auto on January $1,2023,$ is $

X $.$

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