YumYum Corporation (A Calendar-Year Corporation) Moved into a New Office

question 21

Multiple Choice

YumYum Corporation (a calendar-year corporation) moved into a new office building adjacent to its manufacturing plant in 2019.It purchased and placed in service the following assets during 2019: $\begin{array}{ccr}\underline{\text {Date Acquired}}&\underline{\text {Asset Description}}&\underline{\text {Cost}}\\\text { March 4 } & \text { New Office Building } & \$ 850,000 \\\text { March 15 } & \text { New Computer Equipment } & 45,000 \\\text { March 25 } & \text { New Office Furniture } & \$ 25,000 \\\text { August 20 } & \text { Used Machinery } & \$ 120,000 \\\text { December 15 } & \text { New Automobile } & \$ 30.000\end{array}$

All assets are used 100% for business use.The office building does not include the cost of the land on which it is located that was an additional $300,000.The corporation had $900,000 income from operations before calculating depreciation deductions.If YumYum Corporation made all elections available to maximize its overall depreciation deduction for 2019, what is YumYum's maximum depreciation deduction for the office building in 2019?

• A)$17,281
• B)$24,472
• C)$28.302
• D)$29,622

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Definitions:

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Beliefs or forecasts about what will happen in the future or about how someone should behave.

Social Categorization

The process of classifying individuals into groups based on shared characteristics such as race, gender, age, etc.

Innately Programmed

Characteristics, behaviors, or instincts that are hard-wired into an organism at birth.

Self-fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true.