Question
Help. I need assistance arriving at the correct answer and need explanations. Olga is the proprietor of a small business. In 2019, the businesss income,
Help. I need assistance arriving at the correct answer and need explanations.
Olga is the proprietor of a small business. In 2019, the businesss income, before consideration of any cost recovery or 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the 179 deduction on them. She does not claim any available additional first-year depreciation. Olgas cost recovery deduction for 2019, except for the cost recovery with respect to the new 7-year assets, is $95,000. Determine Olgas total cost recovery for 2019 with respect to the 7-year class assets and the amount of any 179 carryforward.
Note:
Please provide your explanations in Word or Excel format as handwritten responses are hard to read.
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