Dana Purchases an Automobile for Personal Use for $27,000

question 20

Multiple Choice

Dana purchases an automobile for personal use for $27,000. After using it for three years, Dana converts the automobile to business use when the fair market value is $19,000. What is Dana's basis for depreciation purposes?

• A)$- 0 -
• B)$19,000
• C)$27,000
• D)The automobile cannot be depreciated.

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Definitions:

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Depressant

A substance that reduces the functional or nervous activity, often used to describe drugs that inhibit the central nervous system, leading to sedation or relaxation.

Alcohol

A psychoactive substance commonly found in beverages like beer, wine, and spirits, known for its intoxicating effects.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information in the body.