Firefly, Inc., acquires business equipment in July 2020 for $2,605,000. Assume that Firefly elects not to claim

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Firefly, Inc., acquires business equipment in July 2020 for $2,605,000. Assume that Firefly elects not to claim bonus depreciation.

a. What is Firefly’s maximum Section 179 deduction for 2020? Explain.

b. What happens to any portion of the annual limit not deducted in 2020? Explain.

c. What is the depreciable basis of the equipment? Explain.

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Concepts In Federal Taxation 2021

ISBN: 9780357141212

28th Edition

Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg

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Question Posted: Nov 18, 2020 12:20 AM

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Firefly, Inc., acquires business equipment in July 2020 for $2,605,000. Assume that Firefly elects not to claim

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a Because Firefly acquired over 2590000 of qualifying Section 179 prop...View the full answer

Concepts In Federal Taxation 2021

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