On July 17, 2018, Kevin Places in Service a Used

question 55

Multiple Choice

On July 17, 2018, Kevin places in service a used automobile that cost $25,000. The car is used 80% for business and 20% for personal use. In 2019, he used the automobile 40% for business and 60% for personal use. Determine the cost recovery recapture for 2019.

• A) $0
• B) $528
• C) $2,000
• D) $2,500
• E) None of the above

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Definitions:

Pre-Qualified

The state of having been evaluated and deemed eligible for something, such as a loan or service, based on preliminary criteria.

Mass Affluent

Individuals with a significant amount of disposable income, though not wealthy by traditional standards, making them a target for certain luxury goods and financial services.

80/20 Rule

A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand.

Heavy Users

Consumers who use or purchase a product or service much more frequently than average users.