Answered step by step
Verified Expert Solution
Question
1 Approved Answer
fill on the blank. Savanah purchased a machine in 2018 and claimed a section 179 expense deduction on the total purchase price. in 2021, business
fill on the blank. Savanah purchased a machine in 2018 and claimed a section 179 expense deduction on the total purchase price. in 2021, business use dropped below 50%. as a result of this drop Savanah must: a) continue to use the same depreciation method and basis b) change to a straight line method. MACRS is not allowed c) complete a calculation to determine the amount of recapture to report as ordinary income for this and she will need to increase her adjusted basis in the asset accordingly d) stop taking depreciation on the machine
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started