Zachary Purchased a New Car on August 1,2013 for $14,500

question 25

Multiple Choice

Zachary purchased a new car on August 1,2013 for $14,500.His records indicate that he uses the car 45 percent for business and 55 percent for personal use.What are his cost recovery deductions for 2013 and 2014?

• A)$653;$1,305
• B)$1,377;$2,205
• C)$1,305;$2,088
• D)$798;$1,595

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Definitions:

T-test

A statistical test used to determine if there is a significant difference between the means of two groups, which may be related in certain features.

Regression Line

A straight line in a scatter plot that best represents the relationship between two variables, typically used in linear regression analysis to predict values.

Standard Error

A statistical measure that represents the accuracy with which a sample distribution represents a population, particularly the variability in an estimated mean.

Parsimony

The principle of using the simplest or least complicated explanatory means necessary to adequately account for observed phenomena, often used in model selection.