Table 1: Sanjuro Corporation (a calendar-year corporation)purchased and placed in service the following assets during 2013:
All assets are used 100% for business use.The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000.The corporation has $3,000,000 income from operations before calculating depreciation deductions.Sanjuro Corporation wishes to maximize its overall depreciation deduction for 2013 and is willing to make any necessary elections.
-Refer to the information in Table 1.What is Sanjuro Corporation's cost recovery deduction for the automobile for 2016 assuming the necessary elections were made to maximize overall depreciation in 2013?
A)$0
B)$1,775
C)$1,875
D)$1,975

Question

Table 1: Sanjuro Corporation (a calendar-year corporation)purchased and placed in service the following assets during 2013:
  All assets are used 100% for business use.The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000.The corporation has $3,000,000 income from operations before calculating depreciation deductions.Sanjuro Corporation wishes to maximize its overall depreciation deduction for 2013 and is willing to make any necessary elections.
-Refer to the information in Table 1.What is Sanjuro Corporation's cost recovery deduction for the automobile for 2016 assuming the necessary elections were made to maximize overall depreciation in 2013?
A)$0 
B)$1,775 
C)$1,875 
D)$1,975

Quizplus · Accepted Answer

The cost recovery deduction for the automobile in 2016 is $1,875, which is the maximum allowable depreciation for that year given the elections made in 2013.

Table 1: Sanjuro Corporation (A Calendar-Year Corporation)purchased and Placed in Service