In July of 2016,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.Pat can take a maximum depreciation deduction in 2016 of
A)$8,928.
B)$2,528.
C)$22,400.
D)$13,440.

Question

Quizplus · Accepted Answer

The maximum depreciation deduction for 2016 is $8,928. This is calculated by multiplying the cost of the automobile ($28,000) by the percentage of business use (80%) and then multiplying that result by the depreciation rate for the first year (33.33%).

In July of 2016,Pat Acquired a New Automobile for $28,000