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

question 8

Multiple Choice

Augie purchased one new asset during the year (five-year property) on November 10, 2017, 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 total cost recovery deduction with respect to the asset for 2017.

• A)$30,500
• B)$320,250
• C)$510,000
• D)$588,750
• E)None of the above

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Definitions:

Self-schemas

Represents cognitive structures derived from past experience that help organize and guide an individual's processing of information about themselves.

Compartmentalised

Divided into sections or categories that separate different elements or aspects, often to organize or manage more efficiently.

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The state of being combined into a complete and harmonious whole, especially in the context of integrating systems or ideas.

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An assessment tool that is based on observable and measurable facts, minimizing personal biases and interpretations.