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On January 1, 2022, Aniyah, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Aniyah does not purchase any other property during 2022 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2022, what is Aniyah’s maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2022?   a. $4,000   b. $2,000   c. $572   d. $800

On January 1, 2022, Aniyah, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Aniyah does not purchase any other property during 2022 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2022, what is Aniyah’s maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2022?   a. $4,000   b. $2,000   c. $572   d. $800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2022, Aniyah, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Aniyah does not purchase any other property during 2022 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2022, what is Aniyah’s maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2022?

 

a. $4,000

 

b. $2,000

 

c. $572

 

d. $800

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