Augie Purchased One New Asset During the Year (Five-Year Property)

question 99

Multiple Choice

Augie purchased one new asset during the year (five-year property) on November 10, 2018, at a cost of $660,000. She would like to use the § 179 election and will also take additional first-year depreciation. The income from the business before the cost recovery deduction and the § 179 deduction was $600,000. Determine the maximum cost recovery deduction available on this asset for 2018.

• A) $30,500
• B) $580,200
• C) $600,000
• D) $660,000
• E) None of the above

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Definitions:

Aversive Conditioning

This is a form of conditioning where an unpleasant or aversive stimulus is paired with a specific behavior to reduce the likelihood of that behavior occurring in the future.

Cognitive-behavioral Therapy

A form of psychotherapy that aims to improve mental health by changing negative patterns of thought and behavior.

Posttraumatic Stress Disorder

A psychological disorder caused by exposure to or witnessing a horrifying incident, marked by recurring flashbacks, distressing dreams, and intense anxiety.

Systematic Desensitization

Systematic desensitization is a behavioral therapy technique used to reduce anxiety through gradual exposure to feared stimuli, paired with relaxation exercises.