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:

Seminole Indians

A Native American tribe originally from Florida, known for its resistance against U.S. military campaigns.

Florida

A southeastern U.S. state known for its beaches, theme parks, and as a popular destination for retirees.

Oklahoma

A state located in the south-central region of the United States.

Whig Party

A political party in the United States (1834–1856) that opposed the policies of President Andrew Jackson and the Democrats.