Augie purchased one used asset during the year (five-year property)on November 10,2010,at a cost of $400,000.She made the § 179 election.The income from the business before the cost recovery deduction and the § 179 deduction was $100,000.Determine the total cost recovery deduction with respect to the asset for 2010.
A)$7,500.
B)$92,500.
C)$100,000.
D)$250,000.
E)None of the above.

Question

Quizplus · Accepted Answer

The § 179 deduction is limited to the income from the business, which is $100,000. Therefore, the total cost recovery deduction for 2010 is $100,000.

Augie Purchased One Used Asset During the Year (Five-Year Property)on