During 2016, William purchases the following capital assets for use in his catering business:

New passenger automobile (September 30)	$67,600
Baking equipment (June 30)	20,280

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. Assume he has adequate taxable income.

Accelerated Depreciation for Personal Property Assuming Half-Year Convention (For Property Placed in Service after December 31, 1986)

Recovery Year			3-Year (200% DB)			5-Year (200% DB)			7-Year (200% DB)			10-Year (200% DB)			15-Year (150% DB)			20-Year (150% DB)
1			33.33			20.00			14.29			10.00			5.00			3.750
2			44.45			32.00			24.49			18.00			9.50			7.219
3			14.81	*		19.20			17.49			14.40			8.55			6.677
4			7.41			11.52	*		12.49			11.52			7.70			6.177
5						11.52			8.93	*		9.22			6.93			5.713
6						5.76			8.92			7.37			6.23			5.285
7									8.93			6.55	*		5.90	*		4.888
8									4.46			6.55			5.90			4.522
9												6.56			5.91			4.462	*
10												6.55			5.90			4.461
11												3.28			5.91			4.462
12															5.90			4.461
13															5.91			4.462
14															5.90			4.461
15															5.91			4.462
16															2.95			4.461
17																		4.462
18																		4.461
19																		4.462
20																		4.461
21																		2.231

ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONSAUTOMOBILES ACQUIRED IN 2016
2016	Auto Depreciation
Year 1	$11,160*
Year 2	5,100
Year 3	3,050
Year 4 (and subsequent years until fully depreciated)	1,875

Calculate William's maximum depreciation deduction for 2016, assuming he uses the automobile 100 percent in his business.