Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation). (Round your final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Phil owns a ranch business and uses four-wheelers to do much of
his work. Occasionally, though, he and his boys will go for a ride
together as a family activity. During year 1, Phil put 1,091 miles
on the four-wheeler that he bought on January 15 for $16,400. Of
the miles driven, only 261 miles was for personal use. Assume
four-wheelers qualify to be depreciated according to the five-year
MACRS schedule and the four-wheeler was the only asset Phil
purchased this year.

a. Calculate the allowable depreciation for year 1 (ignore the §179
expense and bonus depreciation). (Round your final answer to the
nearest dollar amount. Omit the “$” sign in your response.)

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b. Calculate the allowable depreciation for year 2 if total miles
were 1,650 and personal use miles were 790 (ignore the §179 expense
and bonus depreciation).(Round your final answer to the nearest
dollar amount. Omit the “$” sign in your response.)


 

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