For a purchase of a new passenger automobile on august 17, 2022, for $30,000 which is used 40% for business and 60% for personal use during the year, cost recovery deduction for the car for 2022 is $1,200. (Option A)
Cost recovery refers to the business ability to recover (deduct) their investment costs and plays an important role in establishing a business' tax base and can influence investment decisions. An automobile is a listed property which refers to a specific form of depreciable property that may be utilized primarily for business purposes. In order for a property to be considered listed property, it must be used for company’s business more than 50%. However, as the automobile purchased is used 40% for business, it does not qualify as listed property, neither 179 expensing (that allows businesses to write off the entire cost of an eligible asset in the first year) or additional first year depreciation can be taken. As a general rule, an automobile loses 10% of its value (depreciation) as soon as it is driven. Hence, the depreciation would be $30,000*0.1 = $3000. The cost recovery deduction would be $3000*0.4 = $1200.
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<span>A work order is created as soon as the customer places the request for a product or service. Since the manufacturing or the creation of the item begins only after order is made, all the resources and the raw materials should be in place well before time.</span>
Answer:
True
Explanation:
The actual amount of the decrease in foreign investment is less than 100% therefore, if foreign investment fell by 100%, it would be cut in half. Apparently, a decrease of 200% means that it would be totally eliminated, and a decrease of more than 200% is impossible.The the statement does not mention the initial amount of foreign investment.
Answer:
(a) How this episode is likely to affect the economic well-being of people in the country
In the short-run, there will be an increase in labor demanded, increasing jobs to build homes and repair the damage caused by the earthquake. In the long-run, things will begin to go back to normal.
(b) How this episode is likely to affect the economy’s measured GDP
In this case, GDP measurements will shift causing less of an input in private spending and an increase in government spending due to subsidies to increase home-building.
