Assume your client Peace and Love, Inc. has purchased the following assets listed below, when they moved into their new office space in 2020. The office building was purchased in 2017 and placed into service on Dec 31, 2017. Also assume they have taxable income of $350,000 for the year and charitable deductions of $50,000 (This client files a 1040 Tax Return).

Asset	Purchase Date	Cost
Furniture – 7 Year	Nov 20	$180,000
Office Equipment – 7 Year	Apr 1	30,000
Construction Truck – 5 Year	May 30	80,000
Office Leasehold Improvements – 39 Year	Jan 15	500,000
Total		$790,000

Assuming the maximum §179 deduction you could take was $125,000 due to income limits and it was applied all to the Furniture, what is the total depreciation and expensing allowed for 2020 for all property (Rounded to the nearest 1000s)?

	a.	161,000
	b.	184,000
	c.	177,000
	d.	169,000

Answer rating: 100% (QA)

Peace and hove 2017 taxable Income oF 3501000 charity ded... View the full answer