Final answer:
The question regards the cost recovery deduction for a car used partially for business. Accurate calculation requires current tax year's MACRS depreciation rates and luxury automobile limits. Without these details, we cannot confidently provide the correct answer.
Step-by-step explanation:
The question asks about the cost recovery deduction for a passenger automobile used for business purposes. Israel purchased a car for $30,000 and used it 40 percent for business and 60 percent for personal use in 2016. To calculate the cost recovery deduction, we would typically use the Modified Accelerated Cost Recovery System (MACRS) to determine the allowable depreciation for the business-use portion of the vehicle.
However, without specific information on the depreciation guidelines for the year of the purchase, including applicable limits on luxury automobiles, we cannot provide an accurate calculation for the cost recovery deduction Israel could claim.
Therefore, we cannot confidently choose the correct answer among the options provided, as they may not accurately reflect the current tax law or the MACRS depreciation rates for that tax year. The question should be re-evaluated with the appropriate depreciation rates and limitations for the tax year in question.