The Ross CPA Firm Places the Following Property in Service

question 8

Multiple Choice

The Ross CPA Firm places the following property in service during the 2013 tax year:
$\begin{array}{llll}\text { Froperty } & \text { Placed in } \\\text { Description } & \text { Service }& \text {MACRS Life }& \text {Cost Basis }\\\hline\text { Computers } & \text { Feb 6 } & 5 \text { years } & \$ 40,000 \\\text { Office furniture } & \text { June } 24 & 7 \text { years } & \$ 80,000 \\\text { Switchboard system } & \text { Nov 3 } & 5 \text { years } & \$ 130,000\end{array}$
Ross wants to obtain the maximum possible depreciation deduction for these property acquisitions including full utilization of the election to expense property under Section 179.Ross elects out of bonus depreciation.Ross will report 2013 taxable income in the amount of $100,000 before consideration of depreciation on their 2013 property acquisitions.What is Ross' maximum depreciation from these additions?

• A)$119,500
• B)$125,432
• C)$126,932
• D)$130,000
• E)$250,000

---

Definitions:

Management Accountants

Professionals who specialize in financial planning, analysis, and reporting for decision-making within organizations.

Internal Consultants

Employees within an organization who provide expertise and advice on specific matters, functioning like consultants but working from within.

Corporate Cops

Informal term for regulators or enforcement agencies overseeing corporate compliance with laws and regulations.

Production Capacity

The maximum amount of goods or services that a facility can produce over a given period under normal circumstances.