An asset (not an automobile) placed in service in June 2022 has a depreciable basis of $2,710,000, has a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is not used, a half-year convention is used, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2022 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery on the asset? a.$407,000 b.$1,000,000 c.$500,000 d.$1,407,000
An asset (not an automobile) placed in service in June 2022 has a depreciable basis of $2,710,000, has a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is not used, a half-year convention is used, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2022 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery on the asset? a.$407,000 b.$1,000,000 c.$500,000 d.$1,407,000
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 50P
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An asset (not an automobile) placed in service in June 2022 has a depreciable basis of $2,710,000, has a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is not used, a half-year convention is used, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2022 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery on the asset?
a.$407,000
b.$1,000,000
c.$500,000
d.$1,407,000
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