Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2.100.000. She ues the half-year convention for 2021. She has taxable income of $3,050.000 before computing depreciation. What is the total amount of depreciation she can deduct for these assets for 2021. assuming she elects to use the maximum amount of Section 179 that she qualifies for but she elects out of Bonus depreciation for the year? O $1,637,166 $638,643 O $1,200,045
Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2.100.000. She ues the half-year convention for 2021. She has taxable income of $3,050.000 before computing depreciation. What is the total amount of depreciation she can deduct for these assets for 2021. assuming she elects to use the maximum amount of Section 179 that she qualifies for but she elects out of Bonus depreciation for the year? O $1,637,166 $638,643 O $1,200,045
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:Keira purchased several pieces of equipment (all 7-year property) during 2021 for $2.100.000. She uses
the half-year convention for 2021. She has taxable income of $3,050,000 before computing
depreciation. What is the total amount of depreciation she can deduct for these assets for 2021.
assuming she elects to use the maximum amount of Section 179 that she qualifies for but she elects
out of Bonus depreciation for the year?
O $1,637,166
$638,643
O $1,200,045
O $300,090
O $831,492
Transcribed Image Text:Which of the following statements is true?
O The Special Depreciation Allowance (Bonus) is only available to profitable companies.
O The Special Depreciation Allowance (Bonus) is only available to small businesses.
O The Special Depreciation Allowance (Bonus) can be used on both personal and real property used in a business
The Special Depreciation Allowance (Bonus) can be used on personal property with a recovery period of 20 years
or less.
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