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 $50,000.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:

Periosteum

The periosteum is a thick layer of blood-rich connective tissue surrounding the bones, excluding the joint areas.

Trabeculae

A network of supporting fibrous or muscular strands in organs, notably seen in the structure of spongy bone and certain organs like the spleen.

Spongy Bone

Spongy bone, also known as cancellous bone, is a porous type of bone found at the ends of long bones and in the inner layers of short, flat, and irregular bones, characterized by a lattice-like structure of trabeculae.

Compact Bone

Dense, hard tissue that forms the outer layer of bones, providing strength, structure, and the ability to withstand stresses.