Cora purchased a new machine for $1,735,000 and some used office furniture for $480,000 in July 2011. What is Cora's maximum cost recovery deduction?
A) $316524
B) $886,092
C) $2,047,866
D) $2,215,000

Question

Quizplus · Accepted Answer

$1,735,000 bonus depreciation; $285,000 Sec. 179 Exp. [$500,000 - ($2,215,000 - $2,000,000)];($480,000 - $285,000) x .1429 = $27,866 MACRS depreciation; total cost recovery = $1,735,000 + $285,000 + $27,866 = $2,047,866

Cora Purchased a New Machine for $1,735,000 and Some Used