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Scott purchased 3 assets for his business in 2017. He purchased a used 3-year asset for $40,000 on January 21, 2017. He purchased a new

Scott purchased 3 assets for his business in 2017. He purchased a used 3-year asset for $40,000 on January 21, 2017. He purchased a new 5-year asset for $800,000 on May 20, 2017, and he purchased a warehouse for $2,000,000 on November 20, 2017. His taxable income before Section 179 expense is $700,000.

A. Calculate Scotts total cost recovery deduction for the 3-year asset for 2017.

  1. $13,332
  2. $26,666
  3. $40,000
  4. $6,666

B. Calculate Scott's total cost recovery deduction for 2017 for the 5-year asset.

  1. $480,000
  2. $160,000
  3. $568,000
  4. $684,000

C. Calculate Scott's total cost recovery deduction for 2017 for the warehouse.

  1. $6,420
  2. $9,100
  3. $1,003,210
  4. $1,257,391

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