EXHIBIT 10-10 Automobile Depreciation LimitsRecoveryYearYear Placed in Service2021*10,100**16,10020202019201810,000**16,0009,600110,100**16,1009,7005,76010,100**16,1009,7005,760239,7004 and after5,7605,760*As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021.**$8,000 additional depreciation is allowed when bonus depreciation is claimed [§168(k)(2)(F)]. Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentageis 76 percent? (lgnore any possible bonus depreciation.) (Use Exhibit 10-10.)Multiple Choice$5,825$7,600$7,676$11,400None of the choices are correct.

Depreciation is non-cash expense which writes down the value of asset. It is calculated based on…

Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage is 76 percent? (Ignore any possible bonus depreciation.) (Use Exhibit 10-10.)

Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage is 76 percent? (Ignore any possible bonus depreciation.) (Use Exhibit 10-10.)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

EXHIBIT 10-10 Automobile Depreciation Limits
Recovery
Year
Year Placed in Service
2021*
10,100**
16,100
2020
2019
2018
10,000**
16,000
9,600
1
10,100**
16,100
9,700
5,760
10,100**
16,100
9,700
5,760
2
3
9,700
4 and after
5,760
5,760
*As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021.
**$8,000 additional depreciation is allowed when bonus depreciation is claimed [§168(k)(2)(F)].

Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage
is 76 percent? (lgnore any possible bonus depreciation.) (Use Exhibit 10-10.)
Multiple Choice
$5,825
$7,600
$7,676
$11,400
None of the choices are correct.

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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