On May 2, 2017, Karen Placed in Service a New

question 73

Multiple Choice

On May 2, 2017, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 60% for business and 40% for personal use. Determine Karen's total cost recovery for 2017. Karen wants to use both §179 and additional first-year depreciation.

• A)$7,200
• B)$25,000
• C)$27,200
• D)$31,600
• E)None of the above

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Definitions:

Cash Budget

A forecast of cash inflows and outflows over a certain period, used to manage the company's cash balance and ensure liquidity.

Sales Clerk

An employee who handles the exchange of goods for payment, typically in a retail setting, assisting customers in finding products and completing purchases.

Daily Sales

The total revenue generated from goods or services sold by a company during a single day.

Static Budget

A fixed budget that does not change with actual activity levels, designed for planning purposes.