Problem 8-8 Modified Accelerated Cost Recovery System (MACRS), Election to Expense, Listed Property, Umitation on Depreciation of Luxury Automobiles (LO 8.2, 8.3, 8.4, 8.5) During 2019, William purchases the following capital assets for use in his catering business: $54,000 New passenger automobile (September 30) Baking equipment une 30) 7,000 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 (which has a 5-year recovery period), 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