An Asset (Not an Automobile) Put in Service in June

question 12

Multiple Choice

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $1,035,000, a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made, what is the maximum amount of cost that can be deducted in 2019 (assume no income limitation) ?

• A)$207,000
• B)$500,000
• C)$1,017,500
• D)$1,000,000
• E)$1,035,000

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Definitions:

Revenue Variance

The difference between actual revenue and budgeted revenue, often analyzed to understand financial performance.

Spending Variances

Differences between the budgeted or planned amount of expenses and the actual amount spent.

Customers Served

The number of consumers who have been provided with services or products by a business during a specified period.

Revenue Variance

The difference between the actual revenue earned by a company and its expected (or budgeted) revenue.