Ted Purchases and Places in Service in 2013 Personal Property

question 23

Multiple Choice

Ted purchases and places in service in 2013 personal property costing $2,050,000.What is the maximum Sec.179 deduction that Ted can deduct,ignoring any taxable income limitation?

• A)$0
• B)$500,000
• C)$450,000
• D)$2,050,000

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Definitions:

Holding Cost Rate

The percentage of the value of inventory that is held as a cost for storing, insuring, and managing goods over a certain period.

Chilliwack

A city in the province of British Columbia, Canada, known for its natural beauty and outdoor activities.

Holding Cost Rate

The percentage of the inventory value held that represents the cost to store, manage, and insure inventory over a certain period.

Montreal

A major city in Quebec, Canada, known for its cultural diversity, historical sites, and economic significance.