Question

On May 2, 2019, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6.300 lbs. The vehicle is used 100% for business. Karen wants to use both $179 and additional first- year depreciation. Karen's total cost recovery for 2019 is $32000

Answer 1

Answer:

The cost of business use is 100 % = $ 60,000

According to section 179

Depreciation topped at $25,000 for SUV,Trucks and vans with a gross vehicle weight rating more than 6000. So depreciation is $ 25,000

Calculation of Karen's total cost recovery for 2019:

Particulars	Amount	Amount
As per sec 179 expense		$ 25,000
Additional 1st year depreciation	= ($60,000 - $25,000)*50% = ($60,000 - $25,000)*50/100 = ($35,000)*50/100 = $ 17,500	$ 17,500
MACRS cost recovery	= ($60,000 - $25,000 - $17,500)*20% = ($ 17,500)*20/100 = $ 3,500	$ 3,500
Total	$ 25,000 + $ 17,500 + $ 3,500 = $ 46,000	$ 46,000

Answer 2

its 60,000