David Acquired an Automobile for $30,000 for Use in His

Multiple Choice

David acquired an automobile for $30,000 for use in his unincorporated business at the beginning of 2017 and used the standard mileage rate method in 2017.He plans to switch to the actual expense method for 2018.The automobile was used 25,000 miles in 2017.What is the amount of the adjusted basis of the automobile for purposes of computing depreciation in 2018?

A) $30,000
B) $16,625
C) $23,750
D) $20,000