The Ross CPA Firm Places the Following Property in Service

question 51

Multiple Choice

The Ross CPA Firm places the following property in service during the 2013 tax year:
$\begin{array}{llll}\text { Froperty }&\text { Placed in }\\\underline{\text { Description }}& \underline{\text { Service }} &\underline{\text { MACRS Life }}&\underline{\text { Cost B asis }} \\\text { Computers } & \text { Feb 6 } & 5 \text { years } & \$ 40,000 \\\text { Office furniture } & \text { June } 24 & 7 \text { years } & \$ 80,000 \\\text { Switchboard system } & \text { Nov 3 } & 5 \text { years } & \$ 130,000\\\end{array}$
Ross wants to obtain the maximum possible depreciation deduction for these property acquisitions including full utilization of the election to expense property under Section 179.Ross elects out of bonus depreciation.Ross will report 2013 taxable income in the amount of $100,000 before consideration of depreciation on their 2013 property acquisitions.What is Ross' maximum depreciation from these additions?

• A)$119,500
• B)$125,432
• C)$126,932
• D)$130,000
• E)$250,000

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Definitions:

Independent Variables

Variables in an experiment that are manipulated or changed by the researcher to investigate their effect on dependent variables.

Predictor Variables

Variables that are used in statistical models to predict or explain changes in another variable, often referred to as the outcome variable.

Regression Equation

A mathematical formula used to predict a variable based on the relationship between that variable and one or more other variables.

Independent Variables

Variables in an experiment that are manipulated or varied by the researcher to test their effect on dependent variables.