The maximum cost recovery on the BMW in 2021 by Jasmine is $11,200.
What is maximum cost recovery?
Under the modified accelerated cost recovery system (MACRS), which allows a business to recover or deduct the cost basis of an asset over time, a motor vehicle is classified as five-year property.
If we assume a MACRS of 20%, the maximum cost recovery of the BMW in 2021 will be $11,200.
Data and Calculations:
Cost of BMW = $70,000
Business usage = 80%
Personal usage = 20% (100 - 80)
Maximum cost recovery in 2021 = $11,200 ($70,000 x 0.20 x 80%)
Thus, the maximum cost recovery on the BMW in 2021 by Jasmine is $11,200.
Learn more about maximum cost recovery at https://brainly.com/question/14318560
