Arlington LLC purchased an automobile for $40,000 on July 5, 2016. What is Arlington's depreciation expense for 2016 if its business use percentage is 75 percent? (ignore any possible bonus depreciation)
A) $2,370
B) $3,160
C) $6,000
D)$8,000
E)None of these

Question

Quizplus · Accepted Answer

Depreciation expense = Cost of automobile * Business use percentage * Depreciation rate * Number of months in use= $40,000 * 75% * 10% * 6/12= $2,370

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