Question
Sanjuro Corporation (a calendar-year corporation) purchased and placed in service the following assets during 2017: Date Acquired Asset Description Cost February 18 Warehouse Building $2,450,000
Sanjuro Corporation (a calendar-year corporation) purchased and placed in service the following assets during 2017:
Date Acquired Asset Description Cost
February 18 Warehouse Building $2,450,000
June 2 Used Automobile 30,000
August 18 New Computer Equipment 220,000
September 20 New Machinery 1,050,000
December 15 Used Office Equipment 885,000
All assets are used 100% for business use. The warehouse building does not include the cost of the land on which it is located which was an additional $1,000,000. The corporation has $3,000,000 income from operations before calculating depreciation deductions. Sanjuro Corporation made whatever elections were necessary to maximize its overall depreciation deduction for 2017.
What is Sanjuro Corporations maximum deduction for cost recovery for the automobile for 2019?
$1,875 ; $2,950 ; $3,050 ;$5,100
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