Question
Mary acquired the following assets during 2021: Date Asset Cost March 4 Cannabis grow greenhouse $1,550,000 May 12 Land improvements 150,000 Oct. 29 Agricultural equipment
Mary acquired the following assets during 2021: Date Asset Cost March 4 Cannabis grow greenhouse $1,550,000 May 12 Land improvements 150,000 Oct. 29 Agricultural equipment $1,300,000 All of the assets were placed into service immediately. Mary elects to take additional bonus depreciation of $100,000 on the greenhouse, and expense the agricultural equipment under 179. She elects maximum regular cost recovery on these assets. The business earns $600,000 in 2020 before 179 cost recovery. What is Marys cost recovery for 2021, and is there any carryforward?
Can you please show your work on this one?
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