What is the amount of total cost recovery deduction

Assignment Help Financial Management
Reference no: EM131543488

A taxpayer places a $50,000 5-year recovery period asset in service in 2015. This is the only asset placed in service in 2015. Assuming half-year convention, no immediate expensing and no income limitation, what is the amount of total cost recovery deduction ?if bonus depreciation is extended into 2015??

a. ?$0 b. ?$50,000 c. ?$25,000 d. ?$5,000 e. ?$30,000

Reference no: EM131543488

Questions Cloud

The interest rate is expressed as a spread over libor : the interest rate is expressed as a spread over LIBOR.
What is the total cost recovery : What is the total cost recovery assuming that the taxpayer does or does not elect bonus depreciation on auto (half-year convention but no immediate expensing)
About the trademarked : Which of the following can be trademarked?
Option prices on calls and puts : You are looking at option prices on calls and puts and noticed that Biogen Idec (BIIB) is currently selling at $319.55.
What is the amount of total cost recovery deduction : what is the amount of total cost recovery deduction ?if bonus depreciation is extended into 2015??
Net present value and internal rate of return : Pay-back, Net Present Value (NPV), and Internal Rate of Return (IRR).
What is the price of a european put option on bac : What is the price of a European put option on BAC with the same maturity and strike price as the call you bought?
Predict what will happen to interest rates : Predict what will happen to interest rates if:
What is the standard deviation of the returns on this bond : What is the standard deviation of the returns on this bond?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the depreciation amount

Consider a project with inflows of $20,000-outflows of $13,000. If tax rate is 30% and if cash flow in Year 1 is $6,500. what is the depreciation amount?

  Balance sheet quality and earnings quality

How are balance sheet quality and earnings quality related? Provide a specific example of a management judgment, estimate, or choice that could decrease both balance sheet and earnings quality. Be specific as to how the judgment decreased quality in ..

  The composite index of leading indicators

The composite index of leading indicators, made up of 10 leading indicators, historically has

  Best available alternative investment of equal risk

Which is example of firm's long-term debt? Which of the following is defined as the rate of return on best available alternative investment of equal risk?

  Comment on firms monthly collections during calendar year

Using the data given, calculate the payment pattern of Big Air Board's accounts receivable, and comment on the firm's monthly collections during calendar-year 2010.

  Power designs professional liability insurance

Power Designs’ professional liability insurance canbe paid annually or semiannually.

  When your fourth projected bonus rolls around

How much money will you have when you can withdraw it on your 16th birthday, if an investment was made on your behalf equal to 11x your age from your 10th to your 14th birthdays with 17% interest? how much will you have when your fourth projected bon..

  The founders were to raise money by selling equity

Schwadin’s Shawarma Shops (S3 ) is a new restaurant chain in its early stages. The founders have great plans, but need to test their restaurant design, their recipes, and their franchising business model. They believe they have a “million dollar idea..

  Use standard business memo heading

Imagine you have been hired as a consultant by Zachary Meyerowitz, chief investment officer for Bright Side investment fund. Mr. Meyerowitz has asked you to estimate the change needed to adjust Exxon Mobil’s reserves valuation in consideration of low..

  Purchase of a share of blue grass

You are considering the purchase of a share of blue grass, inc. Common stock. You expect to sell it at the end of one year for $87 per share. You will also receive a dividend of $5.36 per share at the end of the next year. If your required return on ..

  About the expected return

Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .30 − .13 Boom .70 .25 Calculate the expected return.

  Nonconstant growth valuation-estimate of stock current price

Nonconstant Growth Valuation A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, then at a constant rate of 6% thereafter.  What is your ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd