Omar Acquires Used 7-Year Personal Property for $100,000 to Use

question 3

Multiple Choice

Omar acquires used 7-year personal property for $100,000 to use in his business in February 2011.Omar does not elect § 179 expensing,but does take the maximum regular cost recovery deduction.As a result,Omar will have a positive AMT adjustment in 2011 of what amount?

• A) $0.
• B) $3,580.
• C) $10,710.
• D) $14,290.
• E) None of the above.

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly harmful behavior.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, to induce another party to enter into a contract.

Undue Influence

The excessive pressure or influence by one person over another, leading to decisions or actions that do not reflect the true intentions of the influenced party.

Shared Mistake

The same mistake made by both parties to a contract.