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:

Covering Law

In the philosophy of science, a general law that 'covers' or explains a set of phenomena, making them predictable and understandable.

Normative Principle

A standard or rule that guides ethical or moral behavior, prescribing how individuals ought to act in given situations.

Electronic Commerce Transactions

Refers to the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.