Problem:
Tammy acquired an automobile for $20,000 on July 1, 2010. She used the automobile partially for business purposes during the 2010-2013 period. The percentage of business use is as follows: 2009, 70%, 2011, 70%, 2012, 40%, 2013, 35%. The automobile is 5-year recovery property, and Tammy did not elect Sec. 179 expensing or bonus depreciation.
Required:
Question 1: Compute the MACRS depreciation deduction for 2010-2013
Question 2: What amount of previously claimed depreciation deduction (if any) must Tammy recapture in 2013?
Note: Please provide reasons to support your answer.