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:

Corner Store

A small retail outlet, often located on a street corner, offering a limited range of household goods and groceries.

Supercenter

A large retail establishment that combines a supermarket and a department store, offering a wide range of products under one roof.

Off-Price Stores

Retail outlets that sell branded goods at lower prices than conventional retail stores, usually by buying overstocked or out-of-season items.

Everyday Value Retailers

Stores that offer low prices on their merchandise on a regular basis, focusing on providing consistent value to consumers.