Audra Acquires the Following New Five-Year Class Property in 2017

question 107

Essay

Audra acquires the following new five-year class property in 2017: $$\begin{array} { l l r } \text { Asset } & \text { Acquisition Date } & \text { Cost } \\\text { A } & \text { January 10 } & \$ 106,000 \\\text { B } & \text { July 5 } & 70,000 \\\text { C } & \text { November 15 } & \underline { 1,950,000 } \\\text { Total } & & \$ 2,126,000 \\\end{array}$$ Audra elects § 179 treatment for Asset C.Audra's taxable income from her business would not create a limitation for purposes of the § 179 deduction.Audra claims the full available additional first-year depreciation deduction.Determine her total cost recovery deduction (including the § 179 deduction) for the year.

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Definitions:

Ratio

A mathematical expression that represents the relationship between two numbers, showing how many times one value contains or is contained within the other.

Interval Reinforcement

A conditioning schedule where a response is rewarded after a variable amount of time has passed, in behavioral psychology.

Schedule of Reinforcement

A strategy in behavioral psychology determining when and how often a response will be reinforced.

Reinforcement

A process in behavioral psychology that increases the likelihood of a response by adding or removing a stimulus after the behavior.