A Client Placed Three New Business Assets into Service in 2019.The

question 4

Multiple Choice

A client placed three new business assets into service in 2019.The client has high taxable income and would like to maximize the deduction by using bonus depreciation.All of the following assets will qualify for bonus depreciation except

• A)manufacturing equipment.
• B)computer software.
• C)a garage for the service vans.
• D)All of the assets qualify for bonus depreciation.

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Definitions:

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, facilitating the raising of capital and investment.

Loss Contingency

A potential financial loss that might occur in the future, dependent on the outcome of a specific event, recorded in accounting if it is probable and the amount can be reasonably estimated.

U.S. GAAP

United States Generally Accepted Accounting Principles, the collection of rules and procedures designed to ensure consistency and transparency in financial reporting.