1) Sorensen Corporation purchases eqipment in 2015 for $100,000. Sorensen has substantial taxable income and desires to minimize this amount to the fullest extent possible. How much can Sorensen deduct under Section 179?

A) $25,000

B) $30,000

C) $50,000

D) $20,000

E) 10,000

2) Aaron purchases a taxicab (5-year MACRS property) for $20,000 on May 3, 2015. This is the only business asset Aaron acquires in 2015. He does not desire to use the Section 179 election. What is the maximum amount of depreciation that he can deduct in 2015?

A) $1,000

B) $3,000

C) $4,000

D) $10,500

E) $14,000

3) In 2015, Oscar purchases $150,000 eqipment. The taxable income of the business is $20,000. What is Oscar's maximum Section 179 deduction in 2015?

A) $20,000

B) $25,000

C) $35,000

D) $45,000

E) $150,000

4) The mid-year convention under MACRS provides that

A) Depreciation is allowable in the year of acquisition of qualified property only if hte property is placed in service in the first one-half of that year

B) One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition

C) Depreciation is allowable in the year of disposition only if the property is disposed of in the last one-half of that year.

D) The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is place in service and for the month of disposition.

5) If the total amount paid for a business is greater than the sum of the net fair market values of he assets of the business, the excess

A) Is currently deductible

B) Maybe be characterized as goodwill and amortized over the period of 15 years

C) Is never deductible