In the Current Year, Paul Acquires a Car for $16,000

question 144

Multiple Choice

In the current year, Paul acquires a car for $16,000. He uses the car in his advertising business and for personal purposes. His records indicate the car is used 60% for business and that the total operating expenses, including depreciation, are $4,700. Paul expects to use the car for 5 years in his business. What amount can Paul deduct as the operating costs of the car?

• A)$- 0 -
• B)$2,400
• C)$2,820
• D)$4,700
• E)$12,000

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Definitions:

Economic Efficiency

The optimal use of resources to achieve the best possible output or outcome with minimal waste or expense.

Unpleasant Work

Jobs or tasks that are considered physically or emotionally uncomfortable, distressing, or dangerous.

Mainstream Economics

The body of economic thought considered orthodox or widely accepted, typically centered around the equilibrium between supply and demand.

Balancing Power

The act of equalizing influence or control among different groups or individuals, often in the context of labor relations.