David Acquired an Automobile for $30,000 for Use in His

question 138

Multiple Choice

David acquired an automobile for $30,000 for use in his unincorporated business at the beginning of 2017 and used the standard mileage rate method in 2017.He plans to switch to the actual expense method for 2018.The automobile was used 25,000 miles in 2017.What is the amount of the adjusted basis of the automobile for purposes of computing depreciation in 2018?

• A)$30,000
• B)$16,625
• C)$23,750
• D)$20,000

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Definitions:

Objective Lens

A component of a microscope closest to the object being examined, focusing light or electrons to produce a magnified image.

Ocular Lens

A transparent structure in the eye that helps to refract light to be focused on the retina, enabling vision.

MINITAB Output

The results or output generated from analysis conducted using the MINITAB statistical software.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, often used to predict the value of a dependent variable based on the value of one or more independent variables.