1.John purchases residential rental property on June 30, 2017 for a cost of $290,000. Of this amount, $140,000 is allocable to the cost of the home and the remaining $150,000 is allocable to the cost of the land. What is John's maximum depreciation deduction for 2017?

a.$1,485

b.$1,061

c.$370

d.$2,758

e.None of these choices are correct.

2.

A taxpayer places a $50,000 5-year recovery period asset in service in 2017. This is the only asset placed in service in 2017. Assuming half-year convention, no election to expense and no income limitation, what is the amount of total cost recovery deduction?

a.$5,000

b.$25,000

c.$30,000

d.$0

e.$50,000

3.

An asset (not an automobile) put in service in June 2017 has a depreciable basis of $535,000 and a recovery period of 5 years. Assuming bonus depreciation is used, a half-year convention, and no expensing election, what is the maximum amount of cost that can be deducted in 2017?

a.$535,000

b.$321,000

c.$267,500

d.$374,500

e.$107,000

4.

An asset (not an automobile) placed in service in June 2017 has a depreciable basis of $2,055,000, a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2017 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?

a.$1,407,000

b.$1,000,000

c.$407,000

d.$2,000,000

e.$500,000

5.

On January 1, 2017, Sandy, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Sandy does not purchase any other property during 2017 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2017, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2017?

a.$4,000

b.$25,000

c.$572

d.$4,572

e.None of these choices are correct.

6.

Jasper is a self-employed businessman. On March 5, 2017 he purchases a personal computer for use at his home. He uses the computer for personal purposes 50 percent of the time and for business use the remainder of the time. The computer cost $2,300. Jasper wants to claim the maximum amount of depreciation possible for 2017, including the election to expense, if it is available. What is the amount of depreciation that Jasper should claim on the computer for 2017?

a.$1,150

b.$460

c.$230

d.$2,300

e.Some amount less than these amounts.