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11 February, 20:11

Prithi acquired and placed in service $190,000 of equipment on August 1, 2015, for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Prithi elects to expense the maximum amount under Sec. 179. Prithi's total deductions for the year (including Sec. 179 and depreciation) area.) $25,000b.) $63,000c.) $58,000d.) $38,000

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  1. 11 February, 22:49
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    d.) $38,000

    Explanation:

    Given that

    Acquired value of the plant = $190,000

    Recovery period = 5 years

    So according to section 179, the total deduction is limit to the 1 by 5 i. e useful life or recovery period of acquired price or purchase price

    So, the amount is

    = Acquired value of the plant : recovery period

    = $190,000 : 5 years

    = $38,000

    By dividing the acquired value with the recovery period we can get the maximum deduction
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