On June 1, 2012, James Places in Service a New

question 67

Multiple Choice

On June 1, 2012, James places in service a new automobile that cost $40,000.The car is used 60% for business and 40% for personal use.(Assume this percentage is maintained for the life of the car.) James does take additional first-year depreciation.Determine the cost recovery deduction for 2012.

• A)$1,776.
• B)$1,836.
• C)$6,636.
• D)$8,000.
• E)None of the above.

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Definitions:

Unstable Isotopes

Isotopes of chemical elements that exhibit radioactive decay due to an imbalance in nuclear particles.

Neutrons

A type of subatomic particle with no electrical charge, found in the nucleus of an atom alongside protons.

Protons

Positively charged subatomic particles found within the nucleus of an atom and determining the atom's element.

Eukaryotes

Organisms whose cells contain a nucleus enclosed within a membrane, including animals, plants, fungi, and protists, distinguishing them from prokaryotes.