What Is the Maximum Depreciation Expense Deduction for Year 2

question 41

Multiple Choice

What is the maximum depreciation expense deduction for Year 2 (2019) for a passenger automobile, used 100 percent for qualified business use, placed in service on June 15, 2018 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

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Definitions:

Striking Employees

Workers who temporarily stop working as a form of protest, typically to express grievances or demand better conditions or pay.

Official Bargaining Agent

A union legally recognized to negotiate wages, hours, and working conditions on behalf of employees in a particular bargaining unit.

Impasse

An impasse is a situation in which one or both parties believe that reaching an agreement is not imminent.

Negative Settlement Zone

Negative Settlement Zone refers to a situation in negotiation where the interests of the parties involved do not overlap, making it hard to find a satisfactory agreement for both.