Patrick Purchased a Used Passenger Automobile on June 1,2017

question 57

Essay

Patrick purchased a used passenger automobile on June 1,2017.He paid $19,000 for the automobile.During 2017,he uses the automobile 75 percent of the time for business.Patrick wishes to claim the maximum amount of depreciation possible (no bonus depreciation or election to expense).
a.Calculate Patrick's depreciation expense on the automobile for 2017
b.​
Calculate Patrick's depreciation expense on the automobile for 2018,assuming the same 75 percent business use.

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Definitions:

Phillips Curve

An economic concept illustrating an inverse relationship between the level of unemployment and the rate of inflation.

Inflation Rate

The percentage rate of increase in price levels over time, which can erode purchasing power.

Inflation Expectations

The rate at which people expect the prices of goods and services to increase in the future, which can influence economic behavior.

Unemployment Rate

The fraction of people in the labor market who are not employed but are seeking a job.