On May 31, 2014, Gustave purchases a new automobile for $28,000. He uses the car 90% for business and drives the car as follows:

On May 31, 2014, Gustave purchases a new automobile for $28,000. He uses the car 90% for business and drives the car as follows: 5,000 miles in 2014, 14,000 miles in 2015, 11,000 miles in 2016 and 9,800 miles in 2017. Gustave is self-employed.

Determine Gustave’s basis in the business portion of the auto as of January 1, 2018, under the following assumptions:

If required, carry out computations to two decimal places and then round your final answer to the nearest dollar.

a. Gustave uses the automatic mileage method.

Compute his basis adjustments for depreciation for each year.

2014: $______

2015: $______

2016: $______

2017: $______

Gustave’s adjusted basis in the auto on January 1, 2018, is $______

b. Gustave 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. Assume the recovery limitation for 2014 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year) and $1,875 (fourth year).]

Compute his depreciation deductions for year.

2014: $______

2015: $______

2016: $______

2017: $______

Gustave’s adjusted basis in the auto on January 1, 2018, is $______

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more