Dikembe purchases 1,000 breeding hogs for $542,000 in April 2011. Dikembe does not want to claim bonus

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Dikembe purchases 1,000 breeding hogs for $542,000 in April 2011. Dikembe does not want to claim bonus depreciation.

a. What is his maximum 2011 cost-recovery deduction for the hogs?

b. Dikembe's farming operation incurs a net loss this year and probably will next year before taking the cost recovery into consideration. What should Dikembe do in regard to his cost-recovery deductions?

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Mar 29, 2013 02:33 AM

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Dikembe purchases 1,000 breeding hogs for $542,000 in April 2011. Dikembe does not want to claim bonus

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a To maximize the current years cost recovery deductions for personal property the general strategy is to elect the Section 179 expense deduction and ...View the full answer

Concepts In Federal Taxation

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