Answer:
$21,640.
Explanation:
So, we are given the following data or parameters or information which is going to assist us in solving this question/problem:
=> "New passenger automobile (September 30) = $61,600."
=> "Baking equipment (June 30) = 18,480"
=>" William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recoveryand he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. "
=> "Assume he has adequate taxable income."
Therefore, if we are to follow the rules of the Internal Revenue Services, the new passenger automobile that is the depreciable limit = 11,160 - 8000 = 3,160.
Hence, the maximum depreciation deduction = Baking equipment + depreciable limit = 18,480 + 3,160 = $21,640.
