If a New $80,000 Automobile Used 100% for Business in the First

question 27

True/False

If a new $80,000 automobile used 100% for business in the first year (2010)fails the 50% business usage test in the second year,no cost recovery will be recaptured.

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Definitions:

Recurring Transactions

Transactions that occur regularly, such as monthly subscriptions or utility payments, which can be automated in accounting software.

Adjusting Entries

Bookkeeping records created at the closure of an accounting cycle to distribute revenues and expenses to the timeframe in which they were genuinely incurred.

Onscreen Journal

A digital ledger within accounting software that displays financial transactions in chronological order.

Depreciation

The method of allocating the cost of a tangible asset over its useful life.