David immediately placed his car in service when he purchased it on May 16, 2019, for...

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

Solutions

Expert Solution

Depreciation for year 1	$ 2,585	=2350020%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.

ekkarill92 answered 2 years ago

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