Hans Purchased a New Passenger Automobile on August 17, 2017

question 12

Multiple Choice

Hans purchased a new passenger automobile on August 17, 2017, for $30,000. During the year the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the car for 2017.

• A)$500
• B)$1,000
• C)$1,224
• D)$1,500
• E)None of the above

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Definitions:

Marginal Revenue Product

The increased earnings resulting from the application of one additional production factor, such as workforce or investment.

Additional Revenue

Extra income received by a business or government beyond what was originally forecasted or expected.

Factor of Production

Resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specific time period.