Potomac LLC purchased an automobile for $30,000 on August 5, 2019.What is Potomac's depreciation deduction for 2019? (Ignore any possible bonus depreciation.)(Use MACRS Table 1 and Exhibit 10-10.)
A)$10,000.
B)$4,287.
C)$6,000.
D)$30,000.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Under MACRS for 5-year property, the half-year convention applies, and the depreciation rate for the first year is 20%. Therefore, $30,000 * 20% = $6,000.

Potomac LLC Purchased an Automobile for $30,000 on August 5