On June 1, 2017, James Places in Service a New

question 54

Multiple Choice

On June 1, 2017, 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 not take additional first-year depreciation. Determine the cost recovery deduction for 2017.

• A)$1,776
• B)$1,896
• C)$4,800
• D)$8,000
• E)None of the above

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Definitions:

Large Stock Dividends

Distribution of a greater than typical percentage of shares to shareholders, typically impacting the stock's value and distribution.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Stated Value

An arbitrary value assigned to no-par value stock by the board of directors of a company, used for accounting purposes.

Date Of Record

The date of record is the specific date set by a company on which the shareholders must be on the company's books in order to receive a declared dividend.