On January L Grace Leases and Places into Service an Automobile

question 34

Multiple Choice

On January l Grace leases and places into service an automobile with a FMV of $39,000.The business use of the automobile is 60%.The "inclusion amount" for the initial year of the lease from the IRS tables is $20.The annual lease payments are $8,000.What are the tax consequences of this lease?

• A)deduction for lease payments of $4,782
• B)deduction for lease payments of $4,800
• C)deduction for lease payments of $6,000
• D)deduction for lease payment of $8,982

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Definitions:

Scientific Attitude

An approach to investigations that involve skepticism and openness to change when evidence contradicts beliefs.

Humility

A personal quality characterized by a lack of ego, a recognizing of one's own limitations, and a focus on the needs and accomplishments of others.

Conflicting Evidence

Information or data that contradicts or challenges existing understanding or findings.

Testable Propositions

Statements or hypotheses that can be empirically tested through observation or experimentation to evaluate their validity.