In August 2018, Tianshu Acquires and Places into Service 7-

question 813

Essay

In August 2018, Tianshu acquires and places into service 7- year business equipment for $70,000. This is the only asset that she purchased during the year; her taxable income from her trade or business is $23,000. Tianshu elects out of bonus depreciation, and she decides to limit her Sec. 179 election to the maximum amount currently deductible in her business for the current year. What is her maximum cost recovery (Sec. 179 and depreciation) deduction for 2018?

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Definitions:

Place Theory

A theory in hearing that proposes different areas of the basilar membrane respond to different frequencies.

Frequency Theory

A theory in psychology and audiology that suggests pitch is perceived by the rate at which auditory nerve fibers fire.

Pitch Perception

The aspect of hearing that allows individuals to assess sounds on a scale from high to low, based on the frequency of sound waves.

Taste Cells

Specialized sensory cells located in the taste buds on the tongue, responsible for detecting different tastes such as sweetness, saltiness, sourness, bitterness, and umami.