On June 1,2010,Irene Places in Service a New Automobile That

question 39

Multiple Choice

On June 1,2010,Irene places in service a new automobile that cost $21,000.The car is used 70% for business and 30% for personal use.(Assume this percentage is maintained for the life of the car. ) If Congress reenacts additional first-year depreciation for 2010,she does elect not to take additional first-year depreciation.Determine the cost recovery deduction for 2011.

• A)$3,060.
• B)$3,290.
• C)$3,430.
• D)$6,720.
• E)None of the above.

---

Definitions:

Managerial Decision Making

The process by which managers make choices among alternative strategies or actions to solve problems or capitalize on opportunities.

Instrumental Value

Refers to something that is considered valuable for the sake of achieving something else, serving as a means to an end.

Enduring Belief

Long-lasting convictions or values that influence an individual's actions and attitudes.

Terminal Values

Deep-seated beliefs and goals that are regarded as the end-points of life and guide decision-making.