taxes

5. taxpayer places a $50,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, bonus depreciation, and taxable income before cost recovery of $5,000, what is the amount of cost recovery in 2020? a. b. c. d. $5,000 $30,000 $25,000 $50,000 $0 e. In 2020. Alex has income from wages of $16,000, adjusted gross income of $18,000, and tax liability of $300 before the earned income credit. What is the amount of Alex's earned income credit for 2020, assuming he is single and his 5-year-old dependent son lives with him for the full year? a. b. C. d. $3,461 $0 None of these $3,584 $2,000 e. During 2020, Travis purchases $43,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $51,000 before any cost recovery. What is the maximum amount that Travis may deduct under the Section 179 election to expense? a. b. C. $0 $43,000 $6,145 $51,000 None of the above d. e. The earned income credit: a. b. Cannot exceed the amount of the tax liability. Is available to married taxpayer who file separate returns. Must be calculated on earned income as well as adjusted gros income in some cases. C