In the Current Year, Paul Acquires a Car for $16,000

Multiple Choice

In the current year, Paul acquires a car for $16,000. He uses the car in his advertising business and for personal purposes. His records indicate the car is used 60% for business and that the total operating expenses, including depreciation, are $4,700. Paul expects to use the car for 5 years in his business. What amount can Paul deduct as the operating costs of the car?

A) $- 0 -
B) $2,400
C) $2,820
D) $4,700
E) $12,000