Question

An asset (not an automobile) put in service in June 2019 has a depreciable basis of $2,065,000, a recovery period of 5 years, and 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 2019?
a. $411,000
b. $1,427,000
c. $2,065,000
d. $1,411,000
e. None of these choices are correct.

Answer 1

Answer:

c. $2,065,000

Explanation:

Under the depreciation bonus election, 100% of the deduction is allowed thus the amount of cost that can be deducted in 2019 is the total Depreciable base of $2,065,000.