Fred Purchases and Places in Service in 2014 Personal Property

question 89

Multiple Choice

Fred purchases and places in service in 2014 personal property costing $221,000.What is the maximum Sec.179 deduction that Fred can deduct,ignoring any taxable income limitation?

• A)$25,000
• B)$21,000
• C)$4,000
• D)$200,000

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Definitions:

Federal Tax Requirements

The obligations set by the federal government regarding the filing and payment of taxes by individuals, businesses, and other entities.

Cash Balance

The amount of money on hand or in bank accounts, immediately available to a business or individual.

Money Paid Out

The total amount of money a company or individual spends or disburses.

Average Collection Period

The average number of days it takes for a company to receive payment after a sale has been made on credit.