Fred Purchases and Places in Service in 2015 Personal Property

question 15

Multiple Choice

Fred purchases and places in service in 2015 personal property costing $221,000.What is the maximum Sec.179 deduction that Fred can deduct,ignoring any taxable income limitation?

• A)$25,000
• B)$21,000
• C)$4,000
• D)$200,000

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Definitions:

EBIAT

Earnings Before Interest After Taxes, a financial metric that measures a company's profitability excluding interest expenses but after taxes.

Asset Intensity

A measure of how much a company relies on its physical and financial assets to generate revenue, with high asset intensity indicating significant dependence.

Depreciation

The gradual reduction in the value of an asset over time, often due to wear and tear.

Right Brain

The hemisphere of the brain associated with creative, intuitive, and holistic thought processes.