MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) William purchases nonresidential real property costing $300,000 and places it in service in March 2020. What is Lincoln's 2021 depreciation on the property? A) $7,692 B) $6,099 C) $10,908 D) $8,637 2) 2) If the business usage of listed property is less than or equal to 50% of its total usage, depreciation is calculated using the A) regular MACRS tables. B) regular MACRS tables and a mid-month convention. C) alternative depreciation system. D) It may not be depreciated. 3) 3) Enrico is a self-employed electrician. In May of the current year, Enrico acquired a used van (5-year property) for $12,000. He used the van 30% for business. Bonus depreciation is not applied. The maximum depreciation deduction for the van is A) $360. B) $2,400. C) $1,980. D) $720. 4) 4) Enrico is a self-employed electrician. In May of the current year, Enrico acquired a used van (5-year property) for $12,000. He used the van 80% for business and 20% for personal purposes. Enrico does not apply Sec. 179 or bonus depreciation. naximum depreciation deduction for the van is A) $6,720. B) $1,200. C) $1,920. D) $2,400. 5) 5) Costs that qualify as research and experimental expenditures include all of the following except A) depreciation of laboratory equipment. B) costs of obtaining a patent such as attorney fees. C) management studies. D) costs incurred in developing product improvements. 6) 6) Joan bought a business machine for $15,000. In a later year, she sold the machine for $12,800 when the total allowable depreciation is $8,500. The depreciation actually taken on the tax returns totaled $8,000. Joan must recognize a gain (or loss) of A) $6,300. B) $6,800. C) ($3,200). D) no gain or loss. 7) 7) A client placed three new business assets into service in 2021. The client has high taxable income and would like to maximize the deduction by using bonus depreciation. All of the following assets will qualify for bonus depreciation except A) a garage for the service vans. B) manufacturing equipment. C) computer software. D) All of the assets qualify for bonus depreciation. 1