An Asset (Not an Automobile)put in Service in June 2018

question 109

Multiple Choice

An asset (not an automobile) put in service in June 2018 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 2018 (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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