Rand Company purchases and places into service a company automobile costing $40,000 in April 2015.What is the 2015 depreciation deduction on the auto?
A)$2,960
B)$7,200
C)$8,000
D)$11,160
E)$40,000

Question

Quizplus · Accepted Answer

The 2015 depreciation deduction for a company automobile is subject to the luxury auto limits. For 2015, the first-year limit for depreciation on a passenger automobile is $11,160 if bonus depreciation is claimed.

Rand Company Purchases and Places into Service a Company Automobile