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