​An Asset (Not an Automobile) Put in Service in June

question 19

Multiple Choice

​An asset (not an automobile) put in service in June 2015 has a depreciable basis of $2,035,000 and a recovery period of 5 years. Assuming bonus depreciation is extended into 2015, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2015 (assume no income limitation) ?

• A)​$407,000
• B)​$1,407,000
• C)​$2,000,000
• D)​$2,035,000
• E)​None of the above

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Definitions:

Nucleotides

Organic molecules that serve as the monomers, or subunits, of nucleic acids like DNA and RNA, consisting of a base (adenine, thymine, guanine, cytosine, or uracil), a sugar molecule, and one or more phosphate groups.

Gastrocolic Reflex

Local reflex resulting in mass movement of the contents of the colon, which occurs after the entrance of food into the stomach.

Duodenocolic Reflexes

Reflexes that relate the function of the duodenum to the motility of the colon, aiding in digestion.

Peristalsis

A succession of wave-like contractions in muscles that push food through the digestive system.