Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2022 for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Ginger elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Business income before any cost recovery was $850,000. Ginger's total deductions for 2022 (including Sec 179 and depreciation) are OA) $913,000 O B) $1,165,000 C) $1,080,000 OD) $850,000.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2022 for use in her sole proprietorship. The equipment is 5-year
recovery property. No other acquisitions are made during the year. Ginger elects to expense the maximum amount under Sec. 179, and bonus
depreciation is not applied. Business income before any cost recovery was $850,000. Ginger's total deductions for 2022 (including Sec. 179 and
depreciation) are
OA) $913,000.
O B) $1,165,000.
OC) $1,080,000.
OD) $850,000
Transcribed Image Text:Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2022 for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Ginger elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Business income before any cost recovery was $850,000. Ginger's total deductions for 2022 (including Sec. 179 and depreciation) are OA) $913,000. O B) $1,165,000. OC) $1,080,000. OD) $850,000
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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