Aaron Has a Successful Business with $50,000 of Income in 2015

question 17

Multiple Choice

Aaron has a successful business with $50,000 of income in 2015. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest write-off Aaron can obtain in 2015 for the new asset?

• A)$500
• B)$1,000
• C)$3,500
• D)$7,000

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Definitions:

Business Plan

A formal document detailing a business's objectives, strategies, target market, financial forecasts, and operational requirements.

Management Team

The group of individuals responsible for managing an organization and making key decisions to achieve its objectives.

Market Share

The share of a market dominated by a specific company or product, frequently represented as a percentage.

Marketing Plan

A comprehensive document or strategy outlining an organization's advertising and marketing efforts over a period, including campaigns, goals, and target markets.