ohn acquired a building on April 1,2002 for $800,000. Assuming the building is determined to be 0 residential rental real estate, calculate the cost recovery deduction a. $20,512 b. $17,992 c. $29,088 d. $160,000 for 2018. 2. Jane acquired a building fo $1,000,000 on March 2,2004. If the building is classified as real est a. $25,640 b. $44,610 c. $36,360 d. $31,750 nonresidential ate the cost recovery deduction for 2018. 3. Bonnie purchased a new computer for her business (five-year property) on March 10,2018, at a cost of s computer is used 100% in the business. She also purchased a new piece of machinery (seven-year $20,000. Th property) on November 20, 2018, at a cost of $13,000. Bonnie did not elect to expense either of the assets under Section 179, and she elected not to take bonus depreciation for these assets in 2018. Determine the cost recovery deduction for 2018 for these assets. a. $5,858 b. $7,464 c. $6,600 d. $9,586 e. $12,333 4. Samantha's business purchased two assets during the current year. It placed in service computer equipment (5 year property) on January 20 with a basis of $15,000 and machinery (7 year property) on Octob I with a basis of $15,000. Calculate the maximum depreciation expense, rounded to a whole number a. $1,286 b. $5,144 c. $5,786 5. Party, Inc. placed in service on July 30, 2018 machinery and equipment (7 year property) with a b and Section 179 is $300 d. $6,000 of $275,000. Party's income for the current year before the depreciation expense Calculate the maximum depreciation expense including section 179 expensing a. $29,453 b. $55,000 c. $275,000 d. $300,000 Platinum's depreciation expense for 2018 assuming that Platinum chooses not to elect Section 179 and out of bonus depreciation? The vehicle is used 100% for business. a. $10,000 b. $12,000 c. $18,000 d. None of the above is correct. 6. Platinum Services, Inc. places an automobile in service for $60,000 on August 10, 2018. Wha PART 1 till i l Assume that Doug placed da $60,000 ear in service in March 2018, assurning that he did not elect depreciation expense for 20187 he elects not to deduct bonus depreciation. He used the car 75% for bisiness, what is 500 $9,000 $10,000 d. $12,000 8. Assume that Sam placed a $40,000 car in service in July 2018. What is Arlington's depreciation expensefor 2018, if the business use percentage is 75%? a. $8,000 b. $6,000 c. $7,500 d. $10,000 Which of the following is a required test for the deduction of a business expense? a. Ordinary b. Necessary c. Reasonable All of the above. e. None of the above 10. Sonya, Martin's daughter, qualifies as his dependent. Martin, who had AGI of $150,000, incurred the following expenses: Laser surgery to correct Sonya vision problem $2,900 Sonya's prescribed medicine Martin's doctor and dentist bills Prescribed drugs for Martin Contact lens for Martin Martin's stop smoking program Physical therapy for Sonya 500 6,200 1,350 350 550 650 Martin has a medical expense deduction to be included with his other itemized deductions of: a. $o b, $700 c. $11,950 d. $12,500 e. None of the above. 11. Elizabeth is transferred from New York City to Albuquerque with her job. Her moving expenses, which are not reimbursed, are as follows: $1,200 300 400 3,000 5,000 Transportation for household goods Meals ing while traveling st of moving household goods Penalty for breaking New York City apartment lease Elizabeth's deductible moving expense is: b. $4,750 c. $4,900 d. $9600 e. None of the above