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A Used $35,000 Automobile That Is Used 100% for Business

question 29

True/False

A used $35,000 automobile that is used 100% for business is placed in service in 2016.If the automobile fails the 50% business usage test in the second year,no cost recovery will be recaptured.


Definitions:

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Variable Costs

Expenses that fluctuate with the level of output or activity, in contrast to fixed costs which remain constant.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Profit

The financial gain made in a transaction or business operation, calculated as the excess of revenue over expenses.

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