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

question 101

Multiple Choice

An asset (not an automobile) put in service in June 2017 has a depreciable basis of $2,055,000,a recovery period of 5 years,and is the only asset placed in service this 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)$411,000
• B)$1,411,000
• C)$1,427,000
• D)$2,055,000
• E)None of the above

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Definitions:

Say's Law

An economic theory stating that supply creates its own demand, suggesting that producing goods and services generates the means and the willingness to purchase other goods.

Demand-Oriented

Demand-Oriented is an approach or policy focused on increasing consumer demand to stimulate production and economic growth.

Aggregate Supply

The overall quantity of goods and services that businesses in an economic system aim to sell within a certain period.

Classical Macroeconomic Theory

Classical macroeconomic theory is an economic framework that emphasizes the importance of free markets, suggesting economies are self-regulating systems that automatically adjust to achieve full employment.