Rodriguez Corporation Acquired 7-Year Property Costing $450,000 on October 1

question 40

Multiple Choice

Rodriguez Corporation acquired 7-year property costing $450,000 on October 1, 2019.This is the only property acquired this year and Rodriguez elects to expense the maximum amount under Section 179 without applying bonus depreciation.Rodriguez's income before deducting depreciation is $320,000.What is the maximum amount that Rodriguez can deduct in 2019 for Section 179 expensing?

• A)$25,000
• B)$130,000
• C)$320,000
• D)$450,000

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Definitions:

Present Value

The calculated present value of a prospective sum of money or cash flow stream, utilizing a given rate of return.

Land

In economics, land refers to all natural resources used to produce goods and services, including not just real estate but also agricultural land, forests, and mineral resources.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific period.

Rent

A payment made by a tenant at regular intervals in exchange for the use of land, a building, an apartment, an office, or other property.