Sophie Owns an Unincorporated Manufacturing Business

question 63

Multiple Choice

Sophie owns an unincorporated manufacturing business.In 2017,she purchases and places in service $2,037,000 of qualifying five-year equipment for use in her business.The equipment does not qualify for bonus depreciation.Her taxable income from the business before any Sec.179 deduction is $450,000.Sophie elects to expense the maximum under Sec.179.What is Sophie's maximum total cost recovery deduction for 2017?

• A)$407,400
• B)$450,000
• C)$756,800
• D)$809,800

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Definitions:

Research Laboratory

A controlled environment designed for scientific experiments, research, and analysis in various fields of study.

Freud

Sigmund Freud, an Austrian neurologist best known as the father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Aristotle

An ancient Greek philosopher and scientist, known for his contributions to a wide range of subjects including metaphysics, ethics, and biology.

Psychological Research

The scientific study of human behavior, emotions, and the mind, utilizing experimental, observational, and theoretical methods.