Christopher Just Purchased an Automobile for $40,000 on Which He

question 57

Essay

Christopher just purchased an automobile for $40,000 on which he plans to claim 100% as being for business use. To take advantage of MACRS and § 179, he plans to use the actual cost method for determining his deduction in the first year. In subsequent years, he will switch to the automatic mileage method. Comment on Christopher's proposed approach.

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Definitions:

Systematic Desensitization

A therapeutic method used to cure phobias and other behavior problems involving anxiety, by gradual exposure to the feared object or situation in a controlled environment.

Token Economy

An operant conditioning procedure in which people earn a token for exhibiting a desired behavior and can later exchange the tokens for privileges or treats.

Transference

In psychoanalysis, the patient’s transfer to the analyst of emotions linked with other relationships (such as love or hatred for a parent).

Psychological Conflicts

Internal struggles arising from opposing demands, desires, or impulses within an individual's mind.