In July of 2014,Pat Acquired a New Automobile for $28,000

question 86

Multiple Choice

In July of 2014,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.No election is made regarding Sec.179.Assuming her business use remains at 80%,Pat can take a maximum depreciation deduction in 2014 of

• A)$2,528.
• B)$3,160.
• C)$5,600.
• D)$4,480.

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, which indicates how much a company earns from its core operations.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, considering all forms of taxes.

Investment Account

An account held at a financial institution that holds investments such as stocks, bonds, mutual funds, and other assets for the benefit of the investor.

Intercompany Profit

Profits that arise from transactions between companies within the same corporate group, which could distort the true financial position if not eliminated in consolidated financial statements.