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

question 59

Multiple Choice

An asset (not an automobile) placed 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 during the year.Assuming bonus depreciation is used,a half-year convention,and the expensing election is made for the maximum eligible amount,what is the amount of cost that can be deducted in 2017 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?

• A)$407,000
• B)$500,000
• C)$1,000,000
• D)$1,407,000
• E)$2,000,000

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Definitions:

Prediction

The act of forecasting or estimating future events or trends based on current or past data.

Stress-Reduction

Techniques or strategies used to decrease levels of stress and its impact on the body and mind.

Deep Muscle Relaxation

A technique that involves systematically tensing and then relaxing different muscle groups in the body to achieve physical relaxation and reduce stress.

Brain Function

The activities and processes executed by the brain, including cognition, emotion regulation, sensory processing, and controlling bodily functions.