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A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the...

A taxpayer places a $1,050,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)?

a.

$1,000,000

b.

$200,000

c.

$1,050,000

d.

$1,026,000

e.

$210,000

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $35,000 and a recovery period of 5 years and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2019 (assume no income limitation)?

a.

$17,500

b.

$35,000

c.

$24,400

d.

$7,000

e.

$21,000

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $2,065,000, a recovery period of 5 years, and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost that can be deducted in 2019?

a.

$411,000

b.

$1,411,000

c.

$1,427,000

d.

$2,065,000

e.

None of the above

A taxpayer places a $50,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. Assuming half-year convention, no special elections (for example, election to expense), what is the amount of total cost recovery deduction?

a.

$0

b.

$5,000

c.

$25,000

d.

$30,000

e.

$50,000

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All are individual question, although all have been answered: Answers are highlighted in yellow: Solution: Answer: $1,026,000

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