On June 1, 2018, James Places in Service a New

question 29

Multiple Choice

On June 1, 2018, 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.) James does not take additional first-year depreciation. Determine the cost recovery deduction for 2018.

• A) $1,776
• B) $1,896
• C) $4,800
• D) $6,000
• E) None of the above

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Definitions:

McClelland's Need

Refers to a theory identifying three primary needs in work situations: the need for achievement, the need for power, and the need for affiliation.

Alderfer's Relatedness Needs

A component of Alderfer's ERG theory focusing on the interpersonal relationships and social needs of individuals within an organization.

Motivation Theory

A set of theories that aim to explain what drives individuals to initiate, direct, and sustain behaviors and actions to achieve specific goals.

Hierarchical

An organizational structure where individuals or entities are ranked according to levels of authority or status, from the highest to the lowest.