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:

Performance-Based Pay

A compensation model that ties employees' salary or bonuses to their performance or achievements in the workplace.

Individual-Level

Pertains to factors or characteristics that relate to a single person, as opposed to groups or organizational entities.

Organization-Level

Pertains to processes, characteristics, or outcomes that are collective in nature and pertain to the entirety of an organization.

Merit Pay

A compensation strategy that rewards employees based on their performance and achievements, rather than their tenure or position.