On June, 20, 2019, Simon Corporation (A Calendar-Year Corporation) Purchased

question 6

Multiple Choice

On June, 20, 2019, Simon Corporation (a calendar-year corporation) purchased and placed in service a new automobile costing $68,000.This vehicle is used 100% for business.Simon makes whatever elections are necessary to maximum its overall depreciation deduction for the year of acquisition. What would be Simon Corporation's cost recovery deduction for the automobile for 2020?

• A)$0
• B)$15,968
• C)$16,100
• D)$18,100

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Definitions:

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.

ATC

Average Total Cost, the total cost of production divided by the quantity of output produced.

Economic Profits

The surplus that remains after all operational costs, including opportunity costs, are subtracted from total revenues.

Economic Profits

Economic Profits represent the surplus after subtracting both the explicit and implicit costs from total revenue, depicting a firm's advantage beyond the normal returns.