Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2023 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, but bonus depreciation is not applied. Business income before any cost recovery was $850,000. Ginger's total deductions for 2023 (including Sec. 179 and depreciation) are A) $913,000. B) $1,165,000. C) $1,080,000. D) $850,000.
Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2023 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, but bonus depreciation is not applied. Business income before any cost recovery was $850,000. Ginger's total deductions for 2023 (including Sec. 179 and depreciation) are A) $913,000. B) $1,165,000. C) $1,080,000. D) $850,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ginger acquired and placed in service $1,165,000 of equipment on August 1, 2023 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, but bonus
A) $913,000.
B) $1,165,000.
C) $1,080,000.
D) $850,000.
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