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