Final answer:
The statutory dollar cost recovery limits for passenger automobiles under § 280F do not change with the use of midquarter cost recovery; therefore, the statement is false.
Step-by-step explanation:
The statutory dollar cost recovery limits under § 280F for passenger automobiles are not changed if midquarter cost recovery is used. So, the answer to the student's question is false. The cost recovery limits, or depreciation limits, are set annually by the IRS and apply to vehicles placed in service during the tax year. While midquarter convention can affect the depreciation calculation by changing the convention from half-year to midquarter, it does not change the dollar limits themselves, which remain as defined in § 280F.