The Only Asset Bill Purchased During 2017 Was a New

question 48

Multiple Choice

The only asset Bill purchased during 2017 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 2017.

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

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Definitions:

Resource Costs

The financial expenditure associated with the acquisition, maintenance, and utilization of resources such as materials, labor, and capital.

Performance Effectiveness

The degree to which objectives or goals are achieved, often measured by comparing outputs to predetermined standards or outcomes.

Work Efforts

The amount of physical or mental energy exerted by an individual to accomplish tasks and objectives in a job setting.

Performance Accomplishments

The achievements or outcomes that an individual or group has successfully realized, often measured against preset goals or standards.