Caitlyn Purchases and Places in Service Property Costing $1,050,000 in 2019.She

question 46

Multiple Choice

Caitlyn purchases and places in service property costing $1,050,000 in 2019.She wants to elect the maximum Sec.179 deduction allowed and does not plan to apply bonus depreciation.Her business income is $900,000.What is the amount of her allowable Sec.179 deduction and carryover,if any?

• A) \[\begin{array} {| l | l| }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 1,020,000 & 0\\\hline
• \end{array}\]
• B) \[\begin{array} { | l | l |}
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline\$ 900,000 & 0\\\hline
• \end{array}\]
• C) \[\begin{array} {| l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 900,000 & \$ 120,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline 179 \text { deduction } & \text { Carryover } \\
• \hline \$ 900,000 & \$ 150,000 \\
• \hline
• \end{array}\]

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Definitions:

Bilateral Monopoly

A market structure in which there is only one buyer (a monopsony) and one seller (a monopoly), negotiating over the price and quantity of a specific product or resource.

Monopolists

Entities that are the sole providers of a particular product or service in a market, giving them significant control over market price.

World Market

The global arena where goods, services, and financial assets are traded across countries.

Monopsony

A market structure in which there is only a single buyer of a good, service, or resource.