LO.2, 3 Olga is the proprietor of a small business. In 2012, the business income, before consideration
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LO.2, 3 Olga is the proprietor of a small business. In 2012, the business income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends
$600,000 on new seven-year class assets and elects to take the § 179 deduction on them.
She elects not to take additional first-year depreciation. Olga’s cost recovery deduction for 2012, except for the cost recovery with respect to the new seven-year assets, is
$95,000. Determine Olga’s total cost recovery for 2012 with respect to the seven-year class assets and the amount of any § 179 carryforward.
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Related Book For
South Western Federal Taxation 2013 Individual Income Taxes
ISBN: 9781133189558
36th Edition
Authors: William Hoffman, James E. Smith
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