Max Purchases a New Auto in 2019 at a Cost

question 19

Multiple Choice

Max purchases a new auto in 2019 at a cost of $56,000. He uses the car 80% for business. Assuming a half-year convention, bonus depreciation, but no immediate expensing, what is the depreciation deduction on the auto?

• A)$44,800
• B)$14,400
• C)$14,480
• D)$18,100
• E)$10,100

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Definitions:

Money Supply

The total amount of currency and monetary assets within an economy at a specific time.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.

Lender of Last Resort

An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are deemed at risk of failure.

Financial Institutions

Financial Institutions are organizations such as banks, credit unions, and insurance companies that provide a wide range of financial services including deposits, loans, investments, and currency exchange.