Which of the Following Assets Would Be Allowed a Depreciation

question 53

Multiple Choice

Which of the following assets would be allowed a depreciation deduction?
I.A truck used to provide transportation to a job site.
II.A car used for personal purposes.
III.An apartment building rented out for the production of rental income.
IV.A personal-use computer of the taxpayer.
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• A)Only statement II is correct.
• B)Statements II and IV are correct.
• C)Only statement I is correct.
• D)Statements I and III are correct.
• E)All of the assets are depreciable.

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Definitions:

FICA Withholding

Refers to the payroll taxes automatically deducted from an employee's paycheck to fund Social Security and Medicare programs.

Two Jobs

A situation where an individual is employed in two different positions at the same time, impacting income and possibly tax calculations.

Self-Employment Taxes

Taxes paid by individuals who work for themselves, covering Social Security and Medicare contributions.

Net Earnings

The amount of income left after subtracting all expenses, taxes, and costs from the total revenue.