Cora,a calendar-year corporation,purchased a new machine for $35,000 and some used office furniture for $180,000 in July 2015.What is Cora's maximum cost recovery deduction for 2015?
A)$52,151
B)$39,295
C)$30,724
D)$29,295

Question

Quizplus · Accepted Answer

Sec.179 expensing is limited to $10,000 ($225,000 - $35,000 - $180,000),which can be applied to either asset (There is no bonus depreciation.)Total depreciation ($35,000 + $180,000 - $10,000)x .1429 = $29,295 + $10,000 Sec.179 = $39,295

Cora,a Calendar-Year Corporation,purchased a New Machine for $35,000 and Some