Abigail was considering starting a new business. Her preliminary investigations into her new business resulted in expenditures totaling $54,000. If Abigail begins her business on September 1, 2021, and if she elects 195 treatment, determine her startup expenditure deduction in 2021. (show your work).

Andy, owner of Andys Movers, acquires the following new seven-year class property in 2021:

Asset	Acquisition Date	Cost
A	February 1	$1,110,000
B	July 18	75,000
C	October 15	1,425,000
Total		$2,610,000

Because Andy will have a taxable LOSS in 2021, he wants to deduct the MINIMUM amount of cost recovery in 2021. Please show a complete and clearly labelled calculation of Andys deduction.

During 2021, Adam and Eve, married on Oct. 1, 2021 and both age 59, had the following items:

Total salary $72,000

Personal use casualty gain 19,000

Personal use casualty loss 29,500

Alimony paid to Adams first wife (Divorced Jan. 2019) 1,800

Other allowable itemized deductions 12,700

Determine their taxable income for the current year (show your complete calculation for full credit).