Mary Purchased a New Five-Year Class Asset on March 7

question 107

Multiple Choice

Mary purchased a new five-year class asset on March 7, 2012.The asset was listed property (not an automobile) .It was used 60% for business and the rest of the time for personal use.The asset cost $600,000.Mary made the § 179 election.The income from the business before the § 179 deduction was $400,000.Mary does take additional first-year depreciation. Determine the total deductions with respect to the asset for 2012.

• A)$72,000.
• B)$250,000.
• C)$272,000.
• D)$360,000.
• E)None of the above.

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Definitions:

Actual Results

The real outcomes or data collected after an event has occurred, often compared to forecasts or expectations to assess performance.

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Company's Rate

The rate at which a company borrows or lends money, often specific to its cost of capital or interest rates.

Required Rate

The minimum rate of return on an investment that investors demand, taking into account the investment’s risk level compared to the risk-free rate of return.