In July of 2017,Pat Acquired a New Automobile for $28,000

question 41

Multiple Choice

In July of 2017,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.Pat can take a maximum depreciation deduction in 2017 of

• A)$8,928.
• B)$2,528.
• C)$22,400.
• D)$13,440.

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Definitions:

Temporary Account

An account used to track transactions for a single accounting period, closed at the end and its balances are transferred to permanent accounts.

Withdrawals

Amounts of money taken out from a business by its owner(s) for personal use.

Capital

Capital refers to financial assets or resources that businesses use to fund their operations and invest in their growth, such as cash, machinery, and buildings.

Withdrawals

The act of taking out cash or other assets from a business by the owner for their personal use.