Pat Purchased a Used Five-Year Class Asset on March 15

question 49

Multiple Choice

Pat purchased a used five-year class asset on March 15, 2019, for $60,000.He did not elect § 179 expensing. Determine the cost recovery deduction for 2019 for earnings and profits purposes.

• A)$2,000
• B)$3,000
• C)$6,000
• D)$12,000

Understand the difference between multiple-step and single-step income statements.

Identify and classify different types of expenses and losses.

Understand the composition and calculation of net income.

Recognize how inventory is classified in financial statements.