During 2016, William purchases the following capital assets for use in his catering business: New passenger automobile

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During 2016, 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 but elects out of bonus depreciation. Calculate William's maximum depreciation deduction for 2016, assuming he uses the automobile 100 percent in his business.

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Related Book For  answer-question

Income Tax Fundamentals 2017

ISBN: 9781305872738

35th Edition

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

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