David Acquired an Automobile for $30,000 for Use in His

question 19

Multiple Choice

David acquired an automobile for $30,000 for use in his unincorporated business at the beginning of 2016 and used the standard mileage rate method in 2016.He plans to switch to the actual expense method for 2017.The automobile was used 25,000 miles in 2016.What is the amount of the adjusted basis of the automobile for purposes of computing depreciation in 2017?

• A)$30,000
• B)$15,625
• C)$24,000
• D)$20,000

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Definitions:

Surface Listener

An individual who listens to someone speak without fully engaging with or understanding the depth of the conversation.

Ineffective Listener

An individual who struggles to fully comprehend, retain, or respond appropriately to information communicated by others.

Effective Listener

An individual skilled in fully focusing on what others are saying, understanding the information being presented, and responding thoughtfully.

Receiving Element

A component or part that accepts or takes in signals, data, or substances in a mechanical system, electronic device, or biological organism.