Cobly Company, a Calendar Year Taxpayer, Made Only One Asset

question 113

Multiple Choice

Cobly Company, a calendar year taxpayer, made only one asset purchase this year: machinery costing $1,932,500. The machinery is 7-year recovery property, and Cobly placed it in service on October 12. How many months of MACRS depreciation on the machinery is Cobly allowed? 

• A) Six months
• B) Two and one-half months
• C) One and one-half months
• D) None of the above

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Definitions:

Humerus

The long bone in the upper arm or forelimb, extending from the shoulder to the elbow.

Carpals

The eight small bones that make up the wrist, which connect the hand to the forearm, allowing for the wrist's complex movements.

Tarsals

A group of seven bones in the foot situated between the lower leg bones (tibia and fibula) and the metatarsal bones, playing a key role in the structure and function of the foot.

Axial Skeleton

The part of the skeleton that consists of the bones of the head and trunk of a vertebrate.