Arlington LLC purchased an automobile for $40,000 on July 5, 2014. What is Arlington's depreciation expense for 2014 if its business use percentage is 75 percent (ignore any possible bonus depreciation)?

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Depreciation expense = (Cost of automobile * Business use percentage) / Useful life= ($40,000 * 75%) / 5= $40,000 * 0.75 / 5= $30,000 / 5= $6,000

Arlington LLC Purchased an Automobile for $40,000 on July 5