Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage is 76 percent? (Ignore any possible bonus depreciation.) (Use Exhibit 10-10.)
Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage is 76 percent? (Ignore any possible bonus depreciation.) (Use Exhibit 10-10.)
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 64P
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Question
![EXHIBIT 10-10 Automobile Depreciation Limits
Recovery
Year
Year Placed in Service
2021*
10,100**
16,100
2020
2019
2018
10,000**
16,000
9,600
1
10,100**
16,100
9,700
5,760
10,100**
16,100
9,700
5,760
2
3
9,700
4 and after
5,760
5,760
*As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021.
**$8,000 additional depreciation is allowed when bonus depreciation is claimed [§168(k)(2)(F)].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb19ac792-f274-4206-9191-c46f3b775258%2Fbd201dcb-9bbe-4385-93fe-46baf810934e%2Froo3d2_processed.png&w=3840&q=75)
Transcribed Image Text:EXHIBIT 10-10 Automobile Depreciation Limits
Recovery
Year
Year Placed in Service
2021*
10,100**
16,100
2020
2019
2018
10,000**
16,000
9,600
1
10,100**
16,100
9,700
5,760
10,100**
16,100
9,700
5,760
2
3
9,700
4 and after
5,760
5,760
*As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021.
**$8,000 additional depreciation is allowed when bonus depreciation is claimed [§168(k)(2)(F)].
Transcribed Image Text:Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage
is 76 percent? (lgnore any possible bonus depreciation.) (Use Exhibit 10-10.)
Multiple Choice
$5,825
$7,600
$7,676
$11,400
None of the choices are correct.
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