a) $500,000 b) $1,160,000 c) $1,428,000 d) $2,285,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:**Depreciation Question**
During 2023, Phoenix purchased 5-year tangible personal property totaling $2,500,000. The half-year convention applies for 2023. Phoenix would like to claim the maximum amount of depreciation possible. What is the maximum depreciation deduction for the year assuming he has sufficient taxable income and his deduction is not limited?
a) $500,000
b) $1,160,000
c) $1,428,000
d) **$2,285,600**
The correct answer is **d) $2,285,600**.
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