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mrs_skeptik [129]
3 years ago
6

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]3 years ago
7 0

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.

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For example, let say that the price in creating the product (or buying) is $15. This means that right now, the company loses $15 for one of the products. To make a profit, the selling price must be >$15. However, (unless they are a monopoly, such as, for example, electrical companies) there are competitors that they must fight with to get customers. Of course, there are other things that can affect the price, depending on the demographic and area.

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