In: Accounting
David immediately placed his car in service when he purchased it on May 16, 2019, for $23,500. He did not claim bonus depreciation and he used the car 55% for business. What is David's greatest allowable depreciation deduction amount for the second year, assuming the same business use percentage?
$5,500
$8,855
$10,000
$16,000
Depreciation for year 1 | $ 2,585 | =23500*20%*55% |
Depreciation for year 2 | $ 8,800 | =16000*55% |
David's greatest allowable depreciation deduction amount for the second year is $ 8,800. |
The Second option sould be $8,800 instead iof $ 8,855.