On June 1,2016,James Places in Service a New Automobile That

question 70

Multiple Choice

On June 1,2016,James places in service a new automobile that cost $40,000.The car is used 60% for business and 40% for personal use.(Assume this percentage is maintained for the life of the car. ) James does not take additional first-year depreciation (if available) .Determine the cost recovery deduction for 2016.

• A)$1,776
• B)$1,896
• C)$4,800
• D)$8,000
• E)None of the above

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Definitions:

Stimulation

The act of provoking or causing a response in an organism, organ, or tissue through external or internal means.

Stimulation of the Senses

Refers to activities or interventions aimed at engaging one or more of the five senses (sight, sound, touch, taste, smell) for therapeutic, developmental, or experiential purposes.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Field-Independent

Individuals who have the ability to identify and maintain an orientation not influenced by the surrounding context or field.