In 2013,Henry Purchases $2,050,000 of Equipment with a Useful Life

question 12

Multiple Choice

In 2013,Henry purchases $2,050,000 of equipment with a useful life of 7 years.The taxable income of the business is $100,000.What is Henry's maximum depreciation deduction in 2013? (Henry elects out of bonus depreciation.)

• A)$335,000
• B)$378,655
• C)$500,000
• D)$678,640
• E)$721,495

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Definitions:

Online Store

A website or application where goods and services can be bought over the Internet using a web browser or mobile app.

Social Commerce

Social commerce is a subset of e-commerce that involves social media and user contributions to assist in online buying and selling of products and services.

B2C

Business-to-Consumer, a business model where products or services are sold directly from businesses to the end-consumers.

Bits

The smallest unit of data in computing and digital communications, representing a binary value of either 0 or 1.