On June 1,2016,Irene Places in Service a New Automobile That

question 53

Multiple Choice

On June 1,2016,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. ) She does not take additional first-year depreciation (if available) .Determine the cost recovery deduction for 2017.

• A)$3,160
• B)$3,290
• C)$3,570
• D)$6,720
• E)None of the above

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Definitions:

Zoned Duplex

A residential building divided into two units with separate entrances, located in an area designated by zoning laws for such structures.

Option Period

A predetermined time within a contract when a party can exercise specific rights, like extending the contract or purchasing an asset.

Tax Benefit

Financial savings in tax that are realized through various deductions, credits, or exclusions from gross income.

Revoked

Officially canceled, withdrawn, or annulled, often referring to licenses, permissions, or legal rights.