Chahana Acquired and Placed in Service $1,165,000 of Equipment on August

question 1667

Multiple Choice

Chahana acquired and placed in service $1,165,000 of equipment on August 1, 2018 for use in her sole proprietorship. The equipment is 5- year recovery property. No other acquisitions are made during the year. Chahana elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Chahana's total deductions for 2018 (including Sec. 179 and depreciation) are

• A) $1,033,000.
• B) $233,000.
• C) $1,233,000.
• D) $1,165,000.

---

Definitions:

Marginal Revenue

Marginal revenue refers to the additional income generated from selling one more unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product, which varies depending on the level of production.

Cover Charge

A fee that patrons are required to pay upon entry to a bar, nightclub, or restaurant, typically to cover entertainment expenses.

Hank's Honkytonk

A fictional or specific bar or entertainment venue, often associated with country music and dancing.