On June 1, 2017, Irene Places in Service a New

question 90

Multiple Choice

On June 1, 2017, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2018.

• A)$3,160
• B)$3,290
• C)$3,570
• D)$6,720
• E)None of the above

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Definitions:

Plaintiff

The party who initiates a lawsuit in civil court proceedings.

Defendant

A person or entity against whom a lawsuit is filed in a court of law.

Reasonable Person Test

A legal standard used to determine what a typical, prudent person would have done in similar circumstances, applied in various legal contexts.

Surety Bond

Insurance arranged in case a party to a contract fails to perform.