Question
Mary operates a proprietorship that generated $100,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense; $4,000 for bad debt expense;
Mary operates a proprietorship that generated $100,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense; $4,000 for bad debt expense; $112,000 cost of goods sold; and $12,000 meals and entertainment with clients. Mary's maximum CCA has been calculated at $10,000 for the year. How much is Mary's business income for tax purposes?
| $113,000 | ||
| $109,000 | ||
| $107,000 | ||
| $103,000
2-BBD Company has the following information related to class 10 assets for the current year: Beginning Balance: $170,745, cost of additions: $19,485, proceeds of dispositions: $45,163 (original cost=$66,000). Using only this information, what is the maximum CCA deduction for the current year for class 10 assets? |
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