1-

ack purchased a printing machine for $100,000 for use in business. As to the machine he deducted MACRS cost recovery of $30,000, repair costs of $3,000 and maintenance costs of $4,225.

Calculate Jack's adjusted basis for the machine?

2-

Jack invests $15,000 cash in a leasing activity for a 15% ownership share in the business. The remaining 85% owner is Jill.

Jill contributed $10,000 and borrows $75,000 that she invests in the business.

What is the at-risk amounts for Jack and Jill?