On June 1,2014,Irene places in service a new automobile that cost $21,000.The car is used 70% for business and 30% for personal use.(Assume this percentage is maintained for the life of the car. )She does not take additional first-year depreciation (if available).Determine the cost recovery deduction for 2015.
A)$3,160
B)$3,290
C)$3,570
D)$6,720
E)None of these

Question

Quizplus · Accepted Answer

$21,000 × 32% = $6,720 (limited to $5,100*).
$5,100 × 70% = $3,570.
*These depreciation limits are indexed annually.

On June 1,2014,Irene Places in Service a New Automobile That