Multiple Choice 8-10 Limitation on Depreciation of Luxury Automobiles (LO 8.5) In 2018, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 100% for business. Assuming the life convention applies and Ben does not elect out of bonus depreciation, what will depreciation on the auto be in 2018? Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. a. $18,000 b. $57,000 c. $10,000 d. $9,000 e. None of these choices are correct. Multiple Choice 8-7 Election to Expense (LO 8.3) On July 20, 2018, Kelli purchases office equipment at a cost of $12,000. Kelli elects out of bonus depreciation but makes the election to expense for 2018 employed as an attorney, and, in 2018, her business has a net income of $6,000 before considering this election to expense kell has no other income or expenses fe the year. What is the maximum amount that Kelli may deduct for 2018 under the election to expense, assuming she dects to expense the entire 512,000 purchase? a. $6,000 b. $24,000 X c. $3,000 d. $1,000 e. $12,000 Feedback Check My Work Under Section 179, taxpayers may elect to expense the acquisition cost of certain property, subject to certain limitations been deducted over a period of time using the regular cost recovery depreciation rules. The Section 179 deduction applies to both new and used proper