The Only Asset Bill Purchased During 2012 Was a New

question 18

Multiple Choice

The only asset Bill purchased during 2012 was a new seven-year class asset.The asset, which was listed property, was acquired on June 17 at a cost of $50,000.The asset was used 40% for business, 30% for the production of income, and the rest of the time for personal use.Bill always elects to expense the maximum amount under § 179 whenever it is applicable.The net income from the business before the § 179 deduction is $100,000.Determine Bill's maximum deduction with respect to the property for 2012.

• A)$1,428.
• B)$2,499.
• C)$26,749.
• D)$33,375.
• E)None of the above.

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