Serena Owns a Van That She Paid $22,000 for in 2010

question 86

Multiple Choice

Serena owns a van that she paid $22,000 for in 2010 and used exclusively for personal purposes until May 9,2015,when she began using the van in her plumbing business.On May 9,2015,a comparable van was selling for $13,000.Serena sells the van on October 28,2017.Assuming that the van is 5-year MACRS property,it is not listed property,and that Serena did not make the Section 179 election to expense on the van,what is her allowable depreciation deduction in 2017?

• A)$749
• B)$1,248
• C)$1,267
• D)$2,112
• E)$2,496

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Definitions:

SLCSP Premium

The second lowest cost Silver plan premium, which is used to determine premium tax credit eligibility in health insurance marketplaces.

Earned Income Credit

A tax credit that can be refunded to individuals and families with low to moderate income who are working, especially those who have children.

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Pertaining to certain tax credits or payments that can be refunded to the taxpayer if they exceed the amount of taxes owed.

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