1.

Betsy acquired a new network system on June 5, 2019 (5-year class property), for $52,000. She expects taxable income from the business will always be about $130,000 without regard to the 179 election. Betsy will elect 179 expensing. She also acquired 7-year property in July 2019 for $260,000. (Use Table 6A-1)

Required:

Determine Betsys maximum cost recovery deduction with respect to her purchases in 2019:

2.

On February 4, 2019, Jackie purchased and placed in service a car she purchased for $23,200. The car was used exclusively for her business. (Use Table 6A-1 and Luxury Automobile Depreciation)

Required:

Compute Jackies cost recovery deduction in 2019 assuming no 179 expense but the bonus was taken:

3.

Michael is the sole proprietor of a small business. In June 2019, his business income is $9,600 before consideration of any 179 deduction. He spends $261,000 on furniture and equipment in 2019. If Michael elects to take the 179 deduction and no bonus on a conference table that cost $24,300 (included in the $261,000 total). (Use Table 6A-1 and Table 6A-2)

Required:

Determine the maximum cost recovery for 2019 with respect to the conference table: