Examlex

Solved

On April 15, 2012, Sam Placed in Service a Storage

question 54

Essay

On April 15, 2012, Sam placed in service a storage facility (a single-purpose agricultural structure) costing $80,000. Sam also purchased and planted fruit trees costing $40,000. Sam does not elect to expense any of the acquisitions under § 179. Sam elected not to take additional first-year depreciation. Determine Sam's cost recovery from these two items for 2012.


Definitions:

Federal Subsidies

Federal subsidies are financial support and assistance provided by the federal government to organizations, businesses, and individuals in various sectors, including agriculture, health care, and energy, to support public policy objectives.

Interstate Commerce Clause

A provision in the U.S. Constitution granting Congress the power to regulate commerce among the states.

Individual Mandate

A requirement, initially part of the Affordable Care Act, that required individuals to have health insurance or face a penalty, intended to ensure that everyone is covered by health insurance.

American Federalism

A political system in which power is divided and shared between a national, or federal, government and state governments, each with its own set of powers.

Related Questions