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Patrick Purchased a Used Passenger Automobile on June 1,2013

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Essay

Patrick purchased a used passenger automobile on June 1,2013.He paid $17,000 for the automobile.During 2013,he uses the automobile 80 percent of the time for business.Patrick wishes to claim the maximum amount of depreciation possible.
a.Calculate Patrick's depreciation expense on the automobile for 2013.
b.Calculate Patrick's depreciation expense on the automobile for 2014,assuming the same 80 percent business use.


Definitions:

Unemployment Rate

The fraction of the labor force currently without employment but searching for jobs.

Labor Force

The total number of people who are eligible, willing, and able to work, including both the employed and those actively seeking employment.

Adult Population

The segment of the population that is of working age and eligible for employment, typically considered 18 years and older.

Discouraged Worker

An individual who is not actively looking for employment due to believing that no jobs are available for them.

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