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On May 11, 2018, your calendar year firm purchases for $10,000 a machine with an estimated salvage value of $1,000. If the ma
1- Suppose that a small business takes in monthly revenue of $100,000. Labor, rental, energy, and other purchased input costs
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Answer #1

Since, multiple questions have been posted, I have answered the first one relating to maximum deduction for 2018..

______

10,000. (which is Option A)

_____

Explanation:

As per the applicable rules for the year 2018, any qualified property (asset) purchased after September 27, 2017, and before January 1, 2023 is eligible for special depreciation allowance of 100% in the first year. It is also known as first-year bonus depreciation. In the given case, the asset was purchased on May 11, 2018 and the company has elected not to claim depreciation under section 179. The maximum amount of deduction that can be claimed in the first Year (that is, 2018) is $10,000 (10,000*100%). Therefore, Option A is correct.

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