An Asset (Not an Automobile)put in Service in June 2017

question 46

Multiple Choice

An asset (not an automobile) put in service in June 2017 has a depreciable basis of $535,000,a recovery period of 5 years,and is the only asset placed in service during the year.Assuming bonus depreciation is used,a half-year convention,and the expensing election is made,what is the maximum amount of cost that can be deducted in 2017 (assume no income limitation) ?

• A)$107,000
• B)$500,000
• C)$510,000
• D)$525,000
• E)$535,000

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Definitions:

Value

The quantitative or qualitative worth, importance, or usefulness of something.

Black-Scholes

A mathematical model used to price European call and put options, evaluating the options based on the stock price, strike price, volatility, expiration time, and risk-free interest rate.

Strike Price

The price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Pricing Model

A set of criteria or strategies used to determine the selling price of a product or service.