In August of 2013,David Acquires and Places into Service Business

question 25

Multiple Choice

In August of 2013,David acquires and places into service business equipment costing $550,000.The equipment is classified as 5-year recovery property.No other acquisitions are made during the year.The property is not eligible for bonus depreciation.David elects to expense the maximum amount under Sec.179.David's total deductions for the year (including Sec.179 and depreciation) are

• A)$110,000.
• B)$550,000.
• C)$500,000.
• D)$510,000.

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Definitions:

Total Lung Capacity

The maximum amount of air the lungs can hold, typically measured after a maximal inhalation effort.

Tidal Volume

The volume of air displaced between normal inhalation and exhalation when extra effort is not applied, a key component of respiratory physiology.

Hyperventilates

Breathing at an abnormally rapid rate, leading to decreased carbon dioxide levels in the blood.

Carbon Dioxide

Carbon dioxide is a colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.