Problem 7-18 Limitation on Depreciation of Luxury Automobiles (LO 7.4, 7.7)

Deborah purchases a new $32,000 car in 2015 to use exclusively in her business.

If Deborah does not elect to expense in 2015 and holds the car until it is fully depreciated, how many years will this take?

ANNUAL AUTOMOBILE DEPRECIATION LIMITATIONSAUTOMOBILES ACQUIRED IN 2015
2015	Auto Depreciation
Year 1	$3,160
Year 2	$5,100
Year 3	$3,050
Year 4 (and subsequent years until fully depreciated)	$1,875

years