YumYum Corporation (a calendar-year corporation)moved into a new office building adjacent to its manufacturing plant in 2015.It purchased and placed in service the following assets during 2015: All assets are used 100% for business use.The office building does not include the cost of the land on which it is located that was an additional $300,000.The corporation had $900,000 income from operations before calculating depreciation deductions.If YumYum Corporation made all elections available to maximize its overall depreciation deduction for 2015,what would its maximum cost recovery deduction be for 2015?
A)$17,281
B)$35,134
C)$54,447
D)$57,287

Question

YumYum Corporation (a calendar-year corporation)moved into a new office building adjacent to its manufacturing plant in 2015.It purchased and placed in service the following assets during 2015:  All assets are used 100% for business use.The office building does not include the cost of the land on which it is located that was an additional $300,000.The corporation had $900,000 income from operations before calculating depreciation deductions.If YumYum Corporation made all elections available to maximize its overall depreciation deduction for 2015,what would its maximum cost recovery deduction be for 2015?
A)$17,281 
B)$35,134 
C)$54,447 
D)$57,287

Quizplus · Accepted Answer

Sec.179 expensing limited to $5,000 ($225,000 - $45,000 - $25,000 - $120,000 - $120,000 - $30,000).[($850,000 x .02033)+ ($45,000 x .2)+ $5,000 Sec.179.+ ($120,000 + 25,000 - $5,000).1429 + $3,160 auto limit] = $54,447

YumYum Corporation (A Calendar-Year Corporation)moved into a New Office Building