Pyle Inc, a Calendar Year Taxpayer, Generated Over $10 Million Taxable

question 40

Multiple Choice

Pyle Inc., a calendar year taxpayer, generated over $10 million taxable income in 2014. Pyle made one asset purchase: new transportation equipment costing $322,000. The equipment has a 5-year recovery period and was placed in service on February 9. Assuming that Pyle made the Section 179 election with respect to the equipment, compute Pyle's 2014 cost recovery deduction.

• A) $193,200
• B) $322,000
• C) $64,400
• D) None of the above

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Definitions:

Photosynthetic Pigments

Molecules found in plants and other photosynthetic organisms that absorb specific wavelengths of light and convert it into chemical energy.

Chloroplasts

Organelles found in plant and algae cells where photosynthesis takes place, converting light energy into chemical energy.

Cyclic Electron Transport

A process in photosynthesis where electrons are recycled around the photosystem I, contributing to the production of ATP without the production of NADPH.

Noncyclic Electron Transport

A pathway of photosynthesis where electrons are transported from water to NADP+, producing oxygen and contributing to the generation of ATP.