Robert Receives a Car as a Gift from His Mother

question 42

Multiple Choice

Robert receives a car as a gift from his mother. The car's purchase price was $20,000, and it was used personally prior to the gift. Robert uses the car 80% of the time in his pizza business. The car's value at the date of the gift is $9,000. What is Robert's basis in the car for depreciation purposes?

• A)$- 0 -
• B)$7,200
• C)$9,000
• D)$16,000
• E)$20,000

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Definitions:

Sherif's Research

Refers to the work of Muzafer Sherif, especially known for his studies on conformity, social norms, and the Robbers Cave experiment on intergroup conflict and cooperation.

Scientific Understanding

The comprehension of scientific concepts, theories, and empirical evidence derived from systematic observation, experimentation, and reasoning.

Cause and Effect

The relationship between events where one event is the result of the occurrence of the other, often used to establish a causal link in studies and research.

Ethical Responsibility

The moral obligation to act in accordance with ethical principles or standards, and consider the impact of one's actions on others and the environment.