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:

Leisure

Free time spent away from business, work, and domestic chores, often used for rest, recreation, and personal interests.

Wage Rate

The wage rate is the amount of money paid to a worker for a specified quantity of work, typically expressed on an hourly, daily, or piecework basis.

Tangerines

A small citrus fruit with a deep orange color, easy to peel skin, and a sweet flavor.

Consumption Proportions

The ratios at which various goods and services are consumed by an individual or in an economy.