Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gilbert is the proprietor of a small business. In 2017, the business income, before consideration of any cost recovery or 179 deduction, is $3,000,000. Gilbert

Gilbert is the proprietor of a small business. In 2017, the business income, before consideration of any cost recovery or 179 deduction, is $3,000,000. Gilbert spends $2,500,000 on new seven-year class assets (use half year convention), and elects to take the 179 deduction on them. He elects not to take additional first-year depreciation. Gilbert's cost recovery deduction for 2017, for 5-year asset purchases, is $780,000.

If an amount is zero, enter "0". If required, round your intermediate computations and final answers to the nearest dollar.

Click here to access the depreciation table to use for this problem.

a. What is the tentative amount of Gilbert's overall 179 deduction for the seven-year class assets before any income limitation? $

b. Gilbert's cost recovery amount (excluding any 179 deduction) for the seven-year class assets is $.

c. The total amount of Gilbert's 179 deduction for the seven-year class assets after any income limitation is $.

d. Gilbert's total cost recovery depreciation deduction (including any 179 deduction) is $.

e. What is the amount of any 179 carryforward? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago