An asset (not an automobile) put in service in June 2020 has a depreciable basis of $2,065,000, a recovery period of 5 years, an

Question

1 year ago

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An asset (not an automobile) put in service in June 2020 has a depreciable basis of $2,065,000, a recovery period of 5 years, an

d is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost that can be deducted in 2020

Business

1 answer:

faust18 [17] · Answer 1 · 2023-12-13T14:52:59+03:00

Answer:

$2,065,000

Explanation:

Based on the information given the maximum amount of cost that can be deducted in the year 2020 will be depreciable basis of the amount of $2,065,000 reason been that 100% is the bonus depreciation that is allowed under bonus election.

Therefore maximum amount of cost that can be deducted in the year 2020 will be the same amount of $2,065,000.