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

question 86

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

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Definitions:

All Other Segments

In financial reporting, this term refers to the aggregation of operating segments that are not individually reportable due to their size or significance.

Bonus Shares

Additional shares given to existing shareholders without any extra cost, based on the number of shares they already own.

Basic Earnings

The net income divided by the weighted average number of common shares outstanding during the period, representing earnings per share.

Diluted Earnings

A measure of a company's profitability that accounts for all potential shares that could be exercised or converted into shares, often related to options or warrants.