In May 2018, Preston Purchases 5-Year MACRS Property Costing $150,000

question 100

Multiple Choice

In May 2018, Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $60,000. Preston's income is $100,000. Preston does not want to claim bonus depreciation. If Preston wishes to maximize his total 2018 cost recovery deduction, what will his total cost recovery deduction be on the properties purchased in 2018?

• A)$100,000
• B)$122,000
• C)$210,000
• D)$42,000
• E)$34,430

---

Definitions:

First-Year Intern

An individual in the initial year of practical training in a professional field, often as part of educational requirements.

Guilt

An emotional state occurring when a person believes or realizes they have compromised their own standards of conduct or violated a moral standard.

Incest

A taboo and illegal sexual activity between family members or close relatives.

Child Abuse

Any action or lack of action by caregivers or other individuals that results in harm, potential for harm, or threat of harm to a child, including physical, emotional, sexual abuse, or neglect.