\begin{tabular}{|rrrr|} \hline \multicolumn{5}{c}{ Half-year Convention } \\ \cline { 2 - 5 } Year is & \multicolumn{4}{c}{ 3-Years } & \multicolumn{1}{c|}{ 5-Years } & 7-Years \\ \hline 1 & 33.33 & 20 & 14.29 \\ 2 & 44.45 & 32 & 24.49 \\ 3 & 14.81 & 19.2 & 17.49 \\ 4 & 7.41 & 11.52 & 12.49 \\ 5 & & 11.52 & 8.93 \\ 6 & & 5.76 & 8.92 \\ 7 & & & 8.93 \\ 8 & & & 4.46 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|rrrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: First Quarter } \\ \cline { 3 - 5 } Year is & \multicolumn{3}{c}{ Recovery Period } \\ \cline { 2 - 5 } & 1 & 58.33 & 35 & 25 \\ 2 & 27.78 & 26 & 21.43 \\ 3 & 12.35 & 15.6 & 15.31 \\ 4 & 1.54 & 11.01 & 10.93 \\ 5 & & 11.01 & 8.75 \\ 6 & & 1.38 & 8.74 \\ 7 & & & 8.75 \\ 8 & & & 1.09 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|rrrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: Second Quarter } \\ \cline { 3 - 5 } Year is & \multicolumn{4}{c}{ R-Yecovery Period } \\ \hline 1 & 41.67 & 25 & 17.85 \\ 2 & 38.89 & 30 & 23.47 \\ 3 & 14.14 & 18 & 16.76 \\ 4 & 5.3 & 11.37 & 11.97 \\ 5 & & 11.37 & 8.87 \\ 6 & & 4.26 & 8.87 \\ 7 & & & 8.87 \\ 8 & & & 3.33 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|crrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: Fourth Quarter } \\ \cline { 2 - 5 } Year is & \multicolumn{4}{c}{ Recovery Period } \\ \cline { 2 - 5 } & 3-Years & 5-Years & 7-Years \\ \hline 2 & 61.33 & 5 & 3.57 \\ 3 & 20.37 & 22.8 & 19.68 \\ 4 & 10.19 & 13.68 & 14.06 \\ 5 & & 10.94 & 10.04 \\ 6 & & 9.58 & 8.73 \\ 7 & & & 8.73 \\ 8 & & & 7.64 \\ 9 & & & \\ \hline \end{tabular} The following intangible items are incurred on Jan 1st. What is the maximum allowable deduction? Goodwill from an acquisition of $45,000. No impairment has occurred. $45,000$3,333$3,000$2,000$8,000 QUESTION 5 You are an accountant. You are interested in starting a baby clothing boutique. Last year, you spend $2,800 on surveying potential locations and some initial logo designs. You decided to buy a location to open your boutique this year. You pay an additional $4,000 in fees to open the store. Both items are considered start-up expenses. On September 1st of the current year the boutique opens. What are your current year deductions? $4,000$5,000$6,800$5,040$5,010$5,120 \begin{tabular}{|rrrr|} \hline \multicolumn{5}{c}{ Half-year Convention } \\ \cline { 2 - 5 } Year is & \multicolumn{4}{c}{ 3-Years } & \multicolumn{1}{c|}{ 5-Years } & 7-Years \\ \hline 1 & 33.33 & 20 & 14.29 \\ 2 & 44.45 & 32 & 24.49 \\ 3 & 14.81 & 19.2 & 17.49 \\ 4 & 7.41 & 11.52 & 12.49 \\ 5 & & 11.52 & 8.93 \\ 6 & & 5.76 & 8.92 \\ 7 & & & 8.93 \\ 8 & & & 4.46 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|rrrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: First Quarter } \\ \cline { 3 - 5 } Year is & \multicolumn{3}{c}{ Recovery Period } \\ \cline { 2 - 5 } & 1 & 58.33 & 35 & 25 \\ 2 & 27.78 & 26 & 21.43 \\ 3 & 12.35 & 15.6 & 15.31 \\ 4 & 1.54 & 11.01 & 10.93 \\ 5 & & 11.01 & 8.75 \\ 6 & & 1.38 & 8.74 \\ 7 & & & 8.75 \\ 8 & & & 1.09 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|rrrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: Second Quarter } \\ \cline { 3 - 5 } Year is & \multicolumn{4}{c}{ R-Yecovery Period } \\ \hline 1 & 41.67 & 25 & 17.85 \\ 2 & 38.89 & 30 & 23.47 \\ 3 & 14.14 & 18 & 16.76 \\ 4 & 5.3 & 11.37 & 11.97 \\ 5 & & 11.37 & 8.87 \\ 6 & & 4.26 & 8.87 \\ 7 & & & 8.87 \\ 8 & & & 3.33 \\ 9 & & & \\ \hline \end{tabular} \begin{tabular}{|crrrr|} \hline \multicolumn{5}{|c|}{ Mid-Quarter: Fourth Quarter } \\ \cline { 2 - 5 } Year is & \multicolumn{4}{c}{ Recovery Period } \\ \cline { 2 - 5 } & 3-Years & 5-Years & 7-Years \\ \hline 2 & 61.33 & 5 & 3.57 \\ 3 & 20.37 & 22.8 & 19.68 \\ 4 & 10.19 & 13.68 & 14.06 \\ 5 & & 10.94 & 10.04 \\ 6 & & 9.58 & 8.73 \\ 7 & & & 8.73 \\ 8 & & & 7.64 \\ 9 & & & \\ \hline \end{tabular} The following intangible items are incurred on Jan 1st. What is the maximum allowable deduction? Goodwill from an acquisition of $45,000. No impairment has occurred. $45,000$3,333$3,000$2,000$8,000 QUESTION 5 You are an accountant. You are interested in starting a baby clothing boutique. Last year, you spend $2,800 on surveying potential locations and some initial logo designs. You decided to buy a location to open your boutique this year. You pay an additional $4,000 in fees to open the store. Both items are considered start-up expenses. On September 1st of the current year the boutique opens. What are your current year deductions? $4,000$5,000$6,800$5,040$5,010$5,120
