Multiple Choice 8-16

Limitation on Depreciation of Luxury Automobiles (LO 8.5)

Tupper Corp. purchases a new auto in 2022 for $62,000. The auto is used 100 percent for business and the half-year convention applies. Tupper uses bonus when available. What is the 2023 depreciation for this auto?

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

O a. $13,696

O b. $19,840

O c. $18,000

O d. $19,200

O e. $12,400

On July 20,2022, Kelli purchases office equipment at a cost of $24,000. Kell elects out of bonus depredation but makes the election to expense for 2022. She is seitemployed as an attomey, and in 2022, her business has a net income of $6,000 before considering this election to expense. Kelli has no other income or axpenses for to year: What is the maximum amount that Keili may deduct for 2022 under the election to expense, assuming she elocts to exfense the entire $24,000 purchase? a. $1,000 b. $12,000 c. $3,000 d. $6,000 e. $24,000