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:

Sclerenchyma Tissue

A type of plant tissue composed of thick-walled cells that provide structural support, commonly found in regions of the plant that are no longer elongating.

Secondary Growth

In plants, a growth pattern resulting in the thickening of stems and roots, primarily through the activity of the vascular cambium.

Cork Cambium

A type of cambium that produces cork tissue for protection and waterproofing in plant stems and roots.

Secondary Tissue

Secondary tissue refers to the tissues in plants that are produced after primary growth, mainly including the xylem and phloem that contribute to the plant's thickness.