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Multiple Choice $8-1$

Limitation on Depreciation of Luxury Automobiles $($LO $8\mathrm{.}5)$

In $2022,$ Ben purchases and places in service a new auto for his business. The auto costs $$57,000$ and will be used $60$ percent for business. Assuming convention applies and Ben elects out of bonus depreciation and Section $179,$ what will be the depreciation on the auto in $2022?$

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

$$ a$.$ $$6,840$

b$.$ $$11,200$

c$.$ $$6,120$

d$.$ $$6,720$

e$.$ None of these choices are correct