# During 2014, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30). \$21,500

## Question:

During 2014, William purchases the following capital assets for use in his catering business:

New passenger automobile (September 30)………………………….            \$21,500

Baking equipment (June 30) …………………………………………                           6,500

Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile, and he also uses the MACRS accelerated method to calculate depreciation. Calculate William’s maximum depreciation deduction for 2014, assuming he uses the automobile 100 percent in his business.

\$ _______________

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Related Book For

## Income Tax Fundamentals 2015

ISBN: 9781305177772

33rd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

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Question Posted: July 16, 2015 07:11:02