On February 1, 2019, Omar Acquires Used 7-Year Personal Property

question 76

Multiple Choice

On February 1, 2019, Omar acquires used 7-year personal property for 100,000.The property will be used in his business.Omar does not elect § 179 expensing, but he does take the maximum regular tax depreciation deduction.As a result, Omar incurs a positive AMT adjustment in 2019 of what amount?

• A)$0
• B)$3,580
• C)$10,710
• D)$14,290
• E)None of these.

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Definitions:

Accounting Equation

A fundamental financial principle representing the relationship between an entity’s assets, liabilities, and equity; expressed as Assets = Liabilities + Equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' share of the company.

Statement

A written record detailing the financial performance or position of a company at a specific point in time.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating ones, highlighting various components of net income.