Augie Purchased One New Asset During the Year (Five-Year Property)

question 106

Multiple Choice

Augie purchased one new asset during the year (five-year property) on November 10, 2012, at a cost of $450,000. She made the § 179 election.The income from the business before the cost recovery deduction and the § 179 deduction was $310,000.She takes additional first-year depreciation. Determine the total cost recovery deduction with respect to the asset for 2012.

• A)$22,500.
• B)$154,550.
• C)$302,275.
• D)$310,000.
• E)None of the above.

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