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An asset (not an automobile) put in service in June 2019 has a depreciable basis of $2,065,000, a recovery period of 5 years, and is the only asset placed in service this year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost that can be deducted in 2019?

a. $411,000
b. $1,427,000
c. $2,065,000
d. $1,411,000
e. None of these choices are correct.

User Wohlstad
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1 Answer

7 votes

Answer:

c. $2,065,000

Step-by-step explanation:

Under the depreciation bonus election, 100% of the deduction is allowed thus the amount of cost that can be deducted in 2019 is the total Depreciable base of $2,065,000.

User Patrick The Cat
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