A Limitation Exists on the Annual Amount of Deductible Depreciation

question 88

Multiple Choice

A limitation exists on the annual amount of deductible depreciation for passenger automobiles. The limitation rules include which of the following?
I.If the automobile is used less than 100% for business, the annual limitation amount is reduced by multiplying it by the business-use percentage.
II.Section 179 expensing is available for passenger automobiles, but often is not advantageous.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Natural Resources

Assets that are found in nature and are used in the production of goods and services, such as timber, oil, and minerals.