Expenses

July 1, Rex Purchases a new car for $40K. He uses the car 80% for work and drives 8000 miles in 2010, 19000 miles in 2011, 20000 miles in 2012, and 15000 miles in 2013. Determine Rex\'s taxes in the auto as 1/1/14; ifRex uses the automatic mileage method and(b) if Rex 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). The recovery limitations are: 3060 the first year (2010), $4900 2nd yr,2950 3rd yr, and $1775 fourth yr