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

question 115

Multiple Choice

An asset (not an automobile) put in service in June 2018 has a depreciable basis of $2,055,000, a recovery period of 5 years, and is the only asset placed in service this year.Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost that can be deducted in 2018?

• A)$411,000
• B)$1,411,000
• C)$1,427,000
• D)$2,055,000
• E)None of the above