The Only Asset Bill Purchased During 2016 Was a New

question 35

Multiple Choice

The only asset Bill purchased during 2016 was a new seven-year class asset.The asset,which was listed property,was acquired on June 17 at a cost of $50,000.The asset was used 40% for business,30% for the production of income,and the rest of the time for personal use.Bill always elects to expense the maximum amount under § 179 whenever it is applicable.The net income from the business before the § 179 deduction is $100,000.Determine Bill's maximum deduction with respect to the property for 2016.

• A)$1,428
• B)$2,499
• C)$26,749
• D)$33,375
• E)None of the above

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Definitions:

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.

British Pounds

The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.

Fixed Exchange Rates

An exchange rate regime where a country's currency value is tied to another currency, a basket of currencies, or another measure of value, such as gold, and does not fluctuate in the foreign exchange market.