Omar Acquires Used 7-Year Personal Property for $100,000 to Use

question 104

Multiple Choice

Omar acquires used 7-year personal property for $100,000 to use in his business in February 2010.Omar does not elect § 179 expensing,but does take the maximum regular cost recovery deduction.As a result,Omar will have a positive AMT adjustment in 2010 of what amount?

• A)$0.
• B)$3,580.
• C)$10,710.
• D)$14,290.
• E)None of the above.

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Definitions:

Investment

Investment refers to the allocation of resources, usually financial, in order to generate income or profit, including the purchase of assets with the expectation that it will generate payoff in the future.

Advanced Economy

A term used to describe a country with a very high level of economic development, characterized by high-income levels, diversified economic structures, and stable financial markets.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP.

Productivity

The efficiency with which goods and services are produced, typically measured in terms of output per labor hour.