On July 17, 2012, Kevin Places in Service a Used

question 89

Multiple Choice

On July 17, 2012, Kevin places in service a used automobile that cost $25,000.The car is used 80% for business and 20% for personal use.In 2013, he used the automobile 40% for business and 60% for personal use.Determine the cost recovery recapture for 2013.

• A)$0.
• B)$448.
• C)$2,000.
• D)$2,500.
• E)None of the above.

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Definitions:

Common Shares

A type of equity security that represents ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Authorized

Officially approved or sanctioned, often referring to a specified amount of capital stock a corporation is legally permitted to issue.

Issued

In finance, issued refers to the process of making securities available for sale to the public or the specific quantity of securities that have been made available.

Market Value

The current price at which an asset or service can be bought or sold in the open market.