Limitation on Depreciation of Luxury Automobiles (LO 8.5)

In 2021, 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 the half-year convention applies and Ben elects out of bonus depreciation and Section 179, what will be the depreciation on the auto in 2021?

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

a.$6,840

b.$6,120

c.$6,060

d.$11,400

e.None of these choices are correct