Mark wants to purchase a new luxury sedan for $50,000 for use exclusively in his business. The

Question:

Mark wants to purchase a new luxury sedan for $50,000 for use exclusively in his business. The car salesman told Mark that he could expense $25,000 of the cost immediately using Section 179 and depreciate an additional $5,000 using the regular depreciation rates for a total first-year deduction of $30,000. Is he correct? Explain your answer.