Modified Accelerated Cost Recovery System $($MACRS$),$ Election to Expense, Listed Property, Limitation on Depreciation of Luxury Automobiles $($LO $8\mathrm{.}2,8\mathrm{.}3,8\mathrm{.}4,8\mathrm{.}5)$

During $2022,$ William purchases the following capital assets for use in his catering business:

New passenger automobile $($September $30)$

$$66,000$

Baking equipment $($June $30)$

$10,000$

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.

Click here to access the depreciation table and click here to access the annual automobile depreciation limitations$.$

Calculate William's maximum depreciation deduction for $2022,$ assuming he uses the automobile $100$ percent in his business.