Reference no: EM131779645

Winnie purchases and places in service in 2016 personal property costing $2,031,000. The property does not qualify for bonus depreciation. What is the maximum Sec. 179 deduction that Winnie can deduct, ignoring any taxable income limitation?

A) $479,000         B) $469,000          C) $500,000         D) $0

Squidward purchases nonresidential real property costing $300,000 and places it in service in March 2015. What is Squidward's2016 depreciation on the property?

A) $8,637              B) $7,692              C) $10,908            D) $6,099

Krab Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year at a cost of $90,000.  No hardware was acquired.  How much of the cost can Krab deduct this year?

A) $90,000           B) $15,000            C) $30,000            D) $18,000

On January 1, 2016, Goofy Corporation acquires all of the net assets of Dumbo Corporation for $2,000,000. The following intangible assets are included in the purchase agreement:

Assets	Acquisition Cost
Goodwill and going concern value	$105,000
Licenses	$ 45,000
Patents	$ 60,000
Covenant not to compete for five years	$120,000

What is the total amount of amortization allowed in 2016?                                                                                              

A) $38,000           B) $31,000            C) $15,000            D) $22,000