Potomac LLC Purchased an Automobile for $30,000 on August 5

question 85

Multiple Choice

Potomac LLC purchased an automobile for $30,000 on August 5, 2020. What is Potomac's depreciation deduction for 2020? (Ignore any possible bonus depreciation.) (Use MACRS Table 1 and Exhibit 10-10.)

• A)$10,100
• B)$4,287
• C)$6,000
• D)$30,000
• E)None of the choices are correct.

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Definitions:

Habitual Drinker

An individual who regularly engages in drinking alcohol, often to the point where it becomes a routine or compulsion.

Sociable

Characterized by a willingness to engage in social interactions or enjoyment in being in social settings.

Rationalization

A defense mechanism where controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Miserliness

An excessive desire to save money or spend as little as possible; extreme parsimony or stinginess.