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Problem $8-43($LO$.2,3,4)$

On March $15,2024,$ Helen purchased and placed in service a new Acura MDX$.$ The purchase price of the automobile was $$62,000,$ and the vehicle had a rating of $6,500$ GVW$.$ The vehicle was used $100\%$ for business.

If required, round your answers to the nearest dollar.

Click here to access the depreciation table to use for this problem.

a$.$ Assuming that Helen does not use additional first$-$year depreciation, calculate the total depreciation deduction that she can take on the vehicle for $2024.$

Section $179$ expense

MACRS cost recovery

Total deduction

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The law places special limitations on the cost recovery deduction for passenger automobiles. These statutory dollar limits were imposed on passenger automobiles because of the belief that the tax system was being used to underwrite automobiles whose cost and luxury far excet what was needed for their business use. However, there are different rules for vehicles with a GVW of more than $6,000$ lbs$.$