Rustin Bought Used 7-Year Class Property on May 15,2015,for $728,000

question 39

Essay

Rustin bought used 7-year class property on May 15,2015,for $728,000.Rustin elects § 179 and straight-line cost recovery.Rustin's taxable income would not create a limitation for purposes of the § 179 deduction.Determine the maximum cost recovery deduction Rustin can claim for 2015.

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Definitions:

Efficiency Wage

Wage that a firm will pay to an employee as an incentive not to shirk.

Shirking

The behavior of employees reducing their effort or productivity, especially when their work effort is unmonitored or difficult to measure.

Unemployment

The situation in which individuals who are capable of working and are actively seeking employment are unable to find a job.

Professional Baseball

A sport played by athletes who receive compensation for their performance, often associated with leagues and teams that are part of the organized sport industry.