In February 2018, Dante Acquired a New Car Costing $82,000

question 552

Multiple Choice

In February 2018, Dante acquired a new car costing $82,000. He used the car 80% in his sole proprietorship. Assuming Dante does not claim Sec. 179 or bonus depreciation, Dante's maximum depreciation deduction allowable for the car will be

• A) $8,000.
• B) $14,400.
• C) $10,000.
• D) $13,120.

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Definitions:

Apparent Agency

A legal concept where a person appears to be, or is mistakenly believed to be, authorized to act as an agent for another party.

Agency by Estoppel

A principle by which a person or entity is prevented from denying the authority of another who has been allowed to act as their agent, despite not officially having been granted the role.

Equitable Agency

A principle where an agent has the authority to act on behalf of a principal, based on fairness and justice.

General Power of Attorney

A legal document granting someone authority to act on another person's behalf in a variety of matters.