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: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
Related questions
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College