Jan Has a Company Car for Both Business and Personal

question 4

Multiple Choice

Jan has a company car for both business and personal use.Which of the following statements is correct regarding the use of the car?

• A)The company can never deduct full depreciation on the car because Jan uses it for personal trips.
• B)The company only has to charge Jan 30 cents per mile for any of her personal mileage.
• C)If the car cost less than $15,000,the company does not have to charge Jan anything for her personal use.
• D)If Jan only uses the car for commuting to work,she has income equal to $1.50 per one-way trip.