Scott purchased 3 assets for his business in 2017. He purchased a used 3-year asset for $40,000 on January 21, 2017. He purchased a new 5-year asset for $800,000 on May 20, 2017, and he purchased a warehouse for $2,000,000 on November 20, 2017. His taxable income before Section 179 expense is $700,000.

A. Calculate Scott’s total cost recovery deduction for the 3-year asset for 2017.

1. $13,332
2. $26,666
3. $40,000
4. $6,666

B. Calculate Scott's total cost recovery deduction for 2017 for the 5-year asset.

1. $480,000
2. $160,000
3. $568,000
4. $684,000

C. Calculate Scott's total cost recovery deduction for 2017 for the warehouse.

1. $6,420
2. $9,100
3. $1,003,210
4. $1,257,391

Answer rating: 100% (QA)

Since the company did not place more than 40 of the assets during the last quarter of the year the a... View the full answer