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:

Budgeted Sales

The anticipated revenue from goods or services a company plans to sell over a certain period, based on forecasts.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the cost associated with these materials for a specific period.

Cash Payments

Outflows of cash to settle obligations or purchase goods and services.

Total Cost

The sum of all expenses incurred in producing a product or providing a service, including fixed and variable costs.