Enrico Is a Self- Employed Electrician

question 2069

Multiple Choice

Enrico is a self- employed electrician. In May of the current year, Enrico acquired a used van (5- year property) for $12,000. He used the van 80% for business and 20% for personal purposes. Enrico does not apply Sec. 179 or bonus depreciation. The maximum depreciation deduction for the van is

• A) $1,200.
• B) $6,720.
• C) $1,920.
• D) $2,400.

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Definitions:

Legal Authority

The lawful right given to an individual or body to make decisions, enforce laws, and administer justice within a given jurisdiction.

Suspect

A person thought to possibly be involved in or responsible for a particular crime or wrongdoing.

Dividend Expense

An incorrect term, as dividends are distributions of earnings to shareholders and not an expense. Instead, consider "dividend payment."

Cash Dividends

Payments made out of a corporation's earnings to its shareholders, usually in the form of cash.