Question

Question 19 (1 point) What is the maximum depreciation, including bonus depreciation, in 2018 for a used automobile driven 100% for business that was acquired on July 2, 2018, for $28,000? Assume Section 179 is not elected and that this is the only property placed in service during the year. The vehicle has a gross vehicle weight rating under 6,000 pounds. 1) $3,160 2) $18,000 3) $16,800 4) $5,600 5) $11,160

I can figure out how to calculate this. Can you show your work when calculating to help me understand?

Answer 1

Solution the Ceiling on depreciation for a vehicle placed in service in 2018 is $10,000 y Vehicle wrigning upto 60o pounds. However, it sehille is used more than 50% in business, the first year depreciation increased by bonus depreciation to $ 1800 ($10 ao plus $80o). Since in the given ouestion, used automobile has & a it gross vehicle weight under 60o pounds. is used 100 % for business driven. so bonus depreciation will also be allowed. so the maximum depreciation including bonus depreciation dos a used automobile in 2018 = $ 10000 + $8 an = $ | Boo AND -127 $ 1800