On June 1, 2014, James places in service a new automobile that cost $40,000. The car is used 60% for business and 40% for personal use. (Assume this percentage is maintained for the life of the car.) James does not take additional first-year depreciation (if available). Determine the cost recovery deduction for 2014.
a. $1,776
b. $1,896
c. $4,800
d. $8,000
e. None of these
Answer: b