What Is the Maximum Depreciation Expense Deduction for Year 2

question 70

Multiple Choice

What is the maximum depreciation expense deduction for Year 2 (2020) for a passenger automobile, used 100 percent for qualified business use, placed in service on June 15, 2019 and costing $16,000 (the election to expense is not made and no bonus depreciation was taken) ?

• A)$2,800
• B)$3,160
• C)$16,000
• D)$5,100
• E)$5,120

---

Definitions:

Conservation

The act of preserving, protecting, or restoring the natural environment, natural ecosystems, vegetation, and wildlife to prevent depletion or destruction.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Centration

In developmental psychology, the tendency of children in the preoperational stage to focus on one aspect of a situation while neglecting others.

Problem

A situation, question, or item that presents difficulty or requires a solution.