Rand Company Purchases and Places into Service a Company Automobile

question 99

Multiple Choice

Rand Company purchases and places into service a company automobile costing $40,000 in April 2012.What is the 2012 depreciation deduction on the auto?

• A)$ 2,960
• B)$ 7,200
• C)$ 8,000
• D)$11,160
• E)$40,000

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Definitions:

Accounting

The organized method of documenting, examining, condensing, and presenting the economic activities of a company or person.

Investment

An asset or item acquired with the goal of generating income or appreciation in the future.

Accounting

The systematic process of recording, analyzing, summarizing, and reporting financial transactions of a business or individual to ensure accurate financial statements.

Investments

Financial assets or items acquired with the intention of generating income or profit.