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Table 1: Sanjuro Corporation (a calendar-year corporation) purchased and placed in service the following assets during 2013:
All assets are used 100% for business use.The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000.The corporation has $3,000,000 income from operations before calculating depreciation deductions.Sanjuro Corporation wishes to maximize its overall depreciation deduction for 2013 and is willing to make any necessary elections.
-Refer to the information in Table 1.What is Sanjuro Corporation's cost recovery deduction for the automobile for 2016 assuming the necessary elections were made to maximize overall depreciation in 2013?
Income Elasticities
Income elasticities measure how the quantity demanded of a good changes in response to a change in consumers' income.
Normal Goods
Goods for which demand increases as consumer income rises, and decreases as consumer income falls.
Inferior Goods
Goods for which demand decreases as consumer income rises, in contrast to normal goods, where demand increases with higher incomes.
Price Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.
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