In June 2016,Chase purchases a new car for $37,000.He uses the car 75% for business purposes.What is Chase's maximum depreciation deduction for the car in 2016?

Question

Quizplus · Accepted Answer

Chase's maximum depreciation deduction for the car in 2016 will be based on the business use percentage, which is 75%. The maximum depreciation deduction for a car in its first year of use is $11,160. Multiplying this amount by the business use percentage (75%), we get $8,370 as the maximum depreciation deduction for Chase in 2016. Therefore, the correct answer is D.

In June 2016,Chase Purchases a New Car for $37,000