On January L,Grace Leases and Places into Service an Automobile

question 1

Multiple Choice

On January l,Grace leases and places into service an automobile with a FMV of $38,000.The business use of the automobile is 60%.The "inclusion amount" for the initial year of the lease from the IRS tables is $40.The annual lease payments are $8,000.What are the tax consequences of this lease?

• A)deduction for lease payments of $4,776
• B)deduction for lease payments of $4,800
• C)deduction for lease payments of $4,760
• D)deduction for lease payment of $1,896

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Definitions:

Double Exponential Smoothing

A forecasting method that applies exponential smoothing twice, useful in capturing trends and seasonality in data.

Exponential Smoothing Model

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The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically denoted as alpha (α).