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

question 65

Multiple Choice

Omar acquires used 7-year personal property for $100,000 to use in his business in February 2012.Omar does not elect § 179 expensing, but does take the maximum regular cost recovery deduction.He elects not to take additional first-year depreciation.As a result, Omar will have a positive AMT adjustment in 2012 of what amount?

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

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