1.A taxpayer places in service $2,400,000 of personal property in 2019. The maximum Section 179 the taxpayer can elect in 2020 is:

$370,000. $1,040,000. $1,000,000. $0

2. Nonresidential realty costing $100,000 is placed in service in 2001. MACRS for 2020 is:

$2,500. $2,564. $3,175.$14,286.

3. Residential realty costing $100,000 is placed in service in 2001. MACRS for 2020 is:

$2,500. $2,564.$3,636. $14,286.

4.A taxpayer acquires office equipment for $10,000. Which one of the following choices is not an acceptable cost recovery period under either MACRS (regular or alternate) or ADS?

Straight-line for 7 years Straight-line for 10 years 150% declining balance for 7 years

150% declining balance for 10 years

5.What is the maximum depreciation in 2019 for video equipment (5 year MACRS recovery period and 9 year ADS period) acquired on July 2, 2017, for $3,000? The computer is the only property placed in service in 2019. It is used 40% for business and 60% for personal us

$67 $240 $600 $1,200

6.What is the maximum depreciation, including bonus depreciation, in 2019 for a new computer used 80% for business that was acquired on July 2, 2019, for $3,000? Assume Section 179 is not elected and that this is the only property placed in service during the year.

$2,400 $1,200 $1,800 $480

7.The MACRS basis of 5-year property acquired on December 3, 20X1 is $10,000. The property is sold on September 4, 20X2. If the mid-quarter convention applies to personal property acquired in 20X1 and regular (accelerated) MACRS is used, the correct calculation of depreciation expense for 20X2 is:

$10,000 x 38%.

10,000 x 38% x 7.5 1/2.

10,000 x 38% x 9.5 1/2.

10,000 x 38% x 8.5 1/2.