On July 1, 2016, Rex purchases a new automobile for $41,500. He uses the car...
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Accounting
On July 1, 2016, Rex purchases a new automobile for $41,500. He uses the car 94% for business and drives the car as follows: 8,000 miles in 2016, 20,000 miles in 2017, 22,400 miles in 2018, and 16,000 miles in 2019. Determine Rex's basis in the business portion of the auto as of January 1, 2020, under the following assumptions: If required, round your computations to the nearest dollar. a. Rex uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2016: $ 2017: $ DOUI 2018: 2019: $ Rex's adjusted basis in the auto on January 1, 2020, is $ X
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