Arlington LLC purchased an automobile for $40,000 on July 5,2012.What is Arlington's depreciation expense for 2012 if its business use percentage is 75 percent (ignore any possible bonus depreciation) ?

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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 5,2012