1) On July 10, 2021, Fred places in service a SUV that costs $ 70,000 and weighed 6,300

pounds. The SUV is used 100% for business. Determine Fred's maximum deduction for 2021, assuming Fred's Code Section 179 business income is $ 110,000. Fred does not take additional first-year depreciation.

a. $ 2,960 b. $ 34,960 c. $ 35,160 d. $ 70,000

2)

On June 1, 2021, Kelly places in service a new automobile that cost $ 21,000. The car is

used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2021.

a. $ 3,290 b. $ 3,570 c. $ 4,704 d. $ 10,000