The Lovell Accounting Firm Places the Following New Property in Service

question 50

Multiple Choice

The Lovell Accounting Firm places the following new property in service during the 2013 tax year:
$\begin{array}{llll}\text { Froperty }&\text { Placed in }\\\underline{\text { Description }}& \underline{\text { Service }} &\underline{\text { MACRS Life }}&\underline{\text { Cost B asis }} \\ \text { Computers } & \text { Feb 6 } & 5 \text { years } & \$ 80,000 \\\text { Office furniture } & \text { June } 24 & 7 \text { years } & \$ 110,000 \\\text { Fax machine } & \text { Aug 3 } & 5 \text { years } & \$ 100,000 \\\text { Sidewalk } & \text { Dec 11 } & 15 \text { years } & \$ 50,000\end{array}$
Lovell wants to obtain the maximum possible first year depreciation deduction for these property acquisitions including full utilization of the election to expense property under Section 179,and they do not elect out of bonus depreciation.Lovell will report 2013 taxable income in the amount of $150,000 before consideration of depreciation on their 2013 property acquisitions.What is the maximum combined amount of depreciation and Section 179 expense that may be obtained under this set of fact circumstances?

• A)$165,950
• B)$167,300
• C)$183,409
• D)$229,500
• E)$226,600

---

Definitions:

Social Media

Platforms and technologies that enable users to create, share, and exchange content or participate in social networking.

Manipulating

The act of skillfully handling, controlling, or using something or someone often with a negative connotation.

Strategic Planning Session

A structured meeting process intended for organizations to set priorities, focus energy and resources, establish agreements, and plan their strategic goals.

Proposed Change

A suggestion or plan put forward for consideration or implementation to modify an existing situation, process, or system.