Aaron Has a Successful Business with $50,000 of Income in 2019

question 114

Multiple Choice

Aaron has a successful business with $50,000 of income in 2019. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest amount Aaron can deduct in 2019 for the new asset?

• A)$500
• B)$1,000
• C)$3,500
• D)$7,000

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Definitions:

Self-Handicapping

A strategy where people create obstacles and excuses for themselves to avoid blame for possible future failures.

Belief Perseverance

The tendency to maintain one's belief despite contradictory evidence or information, often due to cognitive biases.

Suicide Notes

Written messages left by individuals before attempting or committing suicide, often expressing reasons for their decision.

In-Group/Out-Group Bias

The tendency to favor members of one's own group over those in other groups, leading to preferential treatment and judgment.