On June 1,2014,James places in service a new automobile that cost $40,000.The car is used 60% for business and 40% for personal use.(Assume this percentage is maintained for the life of the car. )James does not take additional first-year depreciation (if available).Determine the cost recovery deduction for 2014.
A)$1,776
B)$1,896
C)$4,800
D)$8,000
E)None of these

Question

Quizplus · Accepted Answer

MACRS cost recovery ($40,000 × .20)× .60 $ 4,800
Limited to ($3,160 × .60)$ 1,896

On June 1,2014,James Places in Service a New Automobile That