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

question 58

Multiple Choice

An asset (not an automobile) put in service in June 2018 has a depreciable basis of $35,000 and 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 made, what is the maximum amount of cost that can be deducted in 2018 (assume no income limitation) ?

• A)$7,000
• B)$17,500
• C)$21,000
• D)$24,400
• E)$35,000

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Definitions:

Preoperational

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.

Decentering

The cognitive ability to consider multiple aspects of a situation or to take another person's perspective, moving beyond self-centric views.

Concrete Operations

A stage in Piaget's theory of cognitive development during which children acquire the ability to think logically about concrete objects and events.

Logical Thought

The process of reasoning in a clear, structured, and consistent manner to arrive at a conclusion based on a set of premises or facts.