The Reed CPA Firm Places the Following Property in Service

question 46

Multiple Choice

The Reed CPA Firm places the following property in service during the 2013 tax year:
$\begin{array}{llll}\text { Froperty }&\text { Placed in }\\\underline{\text { Description }}& \underline{\text { Service }} &\underline{\text { MACRS Life }}&\underline{\text { Cost B asis }} \\\text { Computers } & \text { Feb 6 } & 5 \text { years } & \$ 40,000 \\\text { Office furniture } & \text { June } 24 & 7 \text { years } & \$ 80,000 \\\text { Switchboard system } & \text { Nov 3 } & 5 \text { years } & \$ 130,000\\\end{array}$
Reed wants to obtain the maximum possible depreciation deduction for these property acquisitions including full utilization of the election to expense property under Section 179.Reed does not elect out of bonus depreciation.Reed will report 2013 taxable income in the amount of $100,000 before consideration of depreciation on their 2013 property acquisitions.What is Reed' maximum depreciation from these additions?

• A)$119,500
• B)$125,432
• C)$126,932
• D)$130,000
• E)$175,000

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Definitions:

Customer Structure

The composition and organization of a business's clientele, including types of customers and their relationship to the business.

Geographical Structure

An organizational structure that groups employees or departments based on geographic regions or locations.

Product Structure

An organizational design that arranges departments and teams based on specific products or product lines, enabling focused management and development efforts.

Functional Structure

An organizational layout that groups together employees who are performing similar tasks or functions, such as marketing or finance, facilitating specialization.