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

question 53

Multiple Choice

On June 1,2010,James places in service a new automobile that cost $40,000.The car is used 60% for business and 40% for personal use.(Assume this percentage is maintained for the life of the car. ) If Congress reenacts additional first-year depreciation for 2010,James does elect not to take additional first-year depreciation.Determine the cost recovery deduction for 2010.

• A)$1,776.
• B)$1,836.
• C)$6,576.
• D)$8,000.
• E)None of the above.

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Definitions:

Promissory Note

A written, legally binding promise to pay a specified sum of money to a designated party on demand or at a defined future date.

Negotiable

Capable of being transferred or modified through discussion or compromise.

Payment Date

The specific date on which a payment is due or is scheduled to be made, often related to financial transactions or obligations.

Presentment

The process of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.