Pat Purchased a Used Five-Year Class Asset on March 15

question 85

Multiple Choice

Pat purchased a used five-year class asset on March 15, 2017, for $60,000. He did not elect § 179 expensing. Determine the cost recovery deduction for 2017 for earnings and profits purposes.

• A)$2,000
• B)$3,000
• C)$6,000
• D)$12,000
• E)None of the above

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Definitions:

Monopsony

A market condition in which there is only one buyer or a dominant buyer for a product or service.

Labor Market

The supply and demand dynamics of labor forces, where employers seek to hire workers and workers seek employment.

Equilibrium

The state in a market where supply equals demand, leading to stable prices.

Immigration

The action of coming to live permanently in a foreign country. It can influence a country's economy, culture, and demographics.