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Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 975 miles on the four-wheeler that he bought on January 15 for $14,800. Of the miles driven, only 200 miles was for personal use. Assume four-wheelers qualify to be depreciated according to the five-year MACRS schedule and the four-wheeler was the only asset Phil purchased this year. A. Calculate the allowable depreciation for year 1 (ignore the §179 expense and bonus depreciation). depreciation expense $ B. Calculate the allowable depreciation for year 2 if total miles were 1,715 and personal use miles were 770 (ignore the §179 expense and bonus depreciation). depreciation expense $
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