Ralph Buys a New Truck (5-Year MACRS Property)to Use in His

question 89

Multiple Choice

Ralph buys a new truck (5-year MACRS property) to use in his landscaping business on May 13,2016,at a cost of $18,000.On November 5,2016,Ralph takes advantage of an end of the season clearance sale to purchase various landscaping equipment (7-year MACRS property) costing $34,000.Assuming that Ralph does not wish to immediately expense any of the cost of the property purchased this year,what is his 2016 maximum allowable cost recovery deduction?

• A)$2,114
• B)$5,714
• C)$8,459
• D)$2,086
• E)$15,500

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Definitions:

Natural Liberty

The concept of freedom from artificial or man-made restrictions, promoting the idea of living in accordance with natural laws.

Categorical Imperative

An ethical principle proposed by Immanuel Kant suggesting that one should act only according to that maxim by which you can at the same time will that it should become a universal law.

Personal Virtues

Qualities or traits considered as morally good or desirable in a person, such as honesty, courage, and kindness.

Ethical Theories

Philosophical frameworks designed to guide decision-making by proposing various principles on what is morally right and wrong.