Norm Purchases a New Sports Utility Vehicle (SUV) on October

question 58

Essay

Norm purchases a new sports utility vehicle (SUV) on October 12, 2012, for $50,000.The SUV has a gross vehicle weight of 6,200 lbs.It is used 100% of the time for business and it is the only business asset acquired by Norm during 2012.Compute the maximum deduction with respect to the SUV for 2012. Norm does take additional first-year depreciation.

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Definitions:

Samsung Electronics

A multinational electronics company headquartered in South Korea, known for manufacturing a wide range of consumer and industry electronics, including smartphones, TVs, and semiconductors.

Samsung Life Insurance

A major life insurance company based in South Korea, providing a range of life insurance and financial services.

Product Line Extension

The addition of new products to an existing product line, usually closely related to one or more of the existing products, aimed at capturing a wider segment of the market.

Advertising Costs

Refers to the expenses incurred by a company to promote its products or services through various media channels such as television, radio, digital platforms, etc.