On January L,Grace Leases and Places into Service an Automobile

Multiple Choice

On January l,Grace leases and places into service an automobile with a FMV of $38,000.The business use of the automobile is 60%.The "inclusion amount" for the initial year of the lease from the IRS tables is $40.The annual lease payments are $8,000.What are the tax consequences of this lease?

A) deduction for lease payments of $4,776
B) deduction for lease payments of $4,800
C) deduction for lease payments of $4,760
D) deduction for lease payment of $1,896