In July of 2014,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.No election is made regarding Sec.179.Assuming her business use remains at 80%,Pat can take a maximum depreciation deduction in 2014 of
A)$2,528.
B)$3,160.
C)$5,600.
D)$4,480.

Question

Quizplus · Accepted Answer

The maximum depreciation deduction for 2014 is $2,528. This is calculated by multiplying the cost of the automobile ($28,000) by the business use percentage (80%) and then multiplying that amount by the depreciation rate for the first year (20%).

In July of 2014,Pat Acquired a New Automobile for $28,000