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CTFA · Question #226

Assume that a "temporary" additional (US federal tax related) first-year bonus depreciation of 50 percent applies to a new, $100,000 piece of equipment purchased by Bellemans Chocolatier, Inc. The…

The correct answer is B. $100,000. See the full explanation below for the reasoning.

Taxation

Question

Assume that a "temporary" additional (US federal tax related) first-year bonus depreciation of 50 percent applies to a new, $100,000 piece of equipment purchased by Bellemans Chocolatier, Inc. The asset has a $10,000 estimated final salvage value. If this asset is fully depreciated for tax purposes over its useful life, the overall amount that Bellemans will have depreciated for tax purposes is .

Options

  • A$90,000
  • B$100,000
  • C$135,000
  • D$150,000

How the community answered

(61 responses)
  • A
    3% (2)
  • B
    79% (48)
  • C
    11% (7)
  • D
    7% (4)

Topics

#bonus depreciation#tax depreciation#equipment cost basis#MACRS

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