If an Automobile Is Placed in Service in 2016,the Limitation

question 98

True/False

If an automobile is placed in service in 2016,the limitation for cost recovery in 2018 will be based on the cost recovery limits for the year 2016.

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Definitions:

Parent

A term used to refer to a company that owns more than half of another company, making the latter a subsidiary.

Subsidiary Companies

These are companies that are controlled by another company, known as the parent company, through ownership of more than half of their voting stock.

Stock Investments Account

An account that records the cost of stocks that have been purchased as investments by a company.

Dividends Received

Income received from shares in a company, typically distributed from profits to shareholders as decided by the board of directors.