Max Purchases a New Auto in 2018 at a Cost

question 90

Multiple Choice

Max purchases a new auto in 2018 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)$18,000
• D)$10,000
• E)$8,000

---

Definitions:

Incubators

Organizations designed to accelerate the growth and success of startup and early-stage companies by providing business support resources and services.

Competitive Matrix

A tool used to analyze and display the strengths and weaknesses of a company in relation to its competitors.

Pro Forma Income Statement

A financial statement that projects future income, expenses, and net profit based on hypothetical scenarios.

Profit And Loss

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.