On June 1,2013,James Places in Service a New Automobile That

question 16

Multiple Choice

On June 1,2013,James places in service a new automobile that cost $40,000.The car is used 60% for business and 40% for personal use.(Assume this percentage is maintained for the life of the car.) James does take additional first-year depreciation.Determine the cost recovery deduction for 2013.

• A)$1,776.
• B)$1,836.
• C)$6,696.
• D)$11,160.
• E)None of the above.

---

Definitions:

Selling And Administrative

Expenses related to the selling of products and the management of business operations, not directly tied to production.

Supervisor Salaries

The compensation paid to employees who oversee and manage other workers or operations within a company.

Maintenance

The work done to keep machinery, equipment, or a structure in a condition of efficiency or safety through routine checks, repairs, and cleaning.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used by businesses to manage liquidity.