Serena Owns a Van That She Paid $22,000 for in 2010

question 86

Multiple Choice

Serena owns a van that she paid $22,000 for in 2010 and used exclusively for personal purposes until May 9, 2013, when she began using the van in her plumbing business. On May 9, 2013, a comparable van was selling for $13,000. Serena sells the van on October 28, 2015. Assuming that the van is 5-year MACRS property, it is not listed property, and that Serena did not make the Section 179 election to expense on the van, what is her allowable depreciation deduction in 2015?

• A) $ 749
• B) $1,248
• C) $1,267
• D) $2,112
• E) $2,496

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Definitions:

Toronto Stock Exchange

Canada's largest stock exchange, located in Toronto, Ontario, where stocks, bonds, and other securities are bought and sold.

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The general population or community at large, often referenced in the context of public companies, public offering, or information accessibility.

Contributed Surplus

The amount of money in excess of the par value of shares that shareholders have contributed to a company.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested into the business.