In February 2019,Pietra acquired a new automobile for $82,000 and used the automobile 80% for business.In 2020 her business use of the auto was 70%.Pietra's depreciation deduction for 2020 will be
A)$11,270.
B)$18,368.
C)$12,670.
D)$4,032.

Question

Quizplus · Accepted Answer

The correct answer is A.The depreciation deduction for 2020 is $11,270. This is calculated by multiplying the cost of the automobile by the percentage of business use for 2020 and then multiplying that amount by the depreciation rate for automobiles, which is 20%.Depreciation deduction = $82,000 x 70% x 20% = $11,270

In February 2019,Pietra Acquired a New Automobile for $82,000 and Used