Question

Deborah purchases a new $32,000 car in 2016 to use exclusively in her business. If Deborah does not elect to expense but does take bonus depreciation in 2016 and holds the car until it is fully depreciated, how many years will this take? Please show your calculation:

Answer 1

No. of years=10 years it will take to fully depreciate car.
Year	Depreciation
1	$          11,160
2	$            5,100
3	$            3,050
4	$            1,875
5	$            1,875
6	$            1,875
7	$            1,875
8	$            1,875
9	$            1,875
10	$            1,440
Total	$          32,000
For automobiles, depreciation for first year is 11,160, Second year is $5,100, Third year is $ 3,050 and $ 1,875 for each successive year till full depreciation is provided.