In July of 2014,Pat Acquired a New Automobile for $28,000

question 86

Multiple Choice

In July of 2014,Pat acquired a new automobile for $28,000 and used the automobile 80% for business.No election is made regarding Sec.179.Assuming her business use remains at 80%,Pat can take a maximum depreciation deduction in 2014 of

• A)$2,528.
• B)$3,160.
• C)$5,600.
• D)$4,480.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing ownership interest.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time through the transfer of assets, provision of services, or other economic benefits.

Assets

Economic resources owned or controlled by a business or an individual, capable of producing value and used to generate income or meet obligations.