QUESTION 20 On June 1, 2014 Shu nar places in service a new automobile (five-yea

Question

QUESTION 20 On June 1, 2014 Shu nar places in service a new automobile (five-year property) that cost S21,000. The automobile is used sixty percent(60%) for business and forty percent (40%) for personal use. (Assume this percentage is maintained for the life of the automobile). Determine the Cost Recovery (Depreciation) deduction for 2o15. (The aplicable Stahutory Percenthagefor he utomobile for 2015 is.32 and the year 2 Limitation for automobile Cost Recovery (Depreciation) dedoction is $5,100). $11,160. $3,060. $ 2,352 o s 5,100.

Explanation / Answer

Solution: $3,060

Explanation: $21,000 * 32% = $6,720 (limited to $5,100*)

$5,100 * 60% = $3,060

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