Which of the Following Correctly Describe(s)cost Recovery of Automobiles Placed

question 46

Multiple Choice

Which of the following correctly describe(s) cost recovery of automobiles placed in service in 2015?

• A)Total depreciation, including bonus depreciation, cannot exceed $9,600.
• B)No cost recovery is allowed if the automobile is used 50% or less for trade or business.
• C)The amount of the depreciation deduction cannot exceed $11,160.
• D)No cost recovery is allowed for automobiles used for production of income activities.

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Definitions:

IAS 41

An international accounting standard that prescribes the accounting treatment and reporting of agricultural activity.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Biological Transformation

The processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.