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Mr. Rogers was so pleased with the tax preparation services you provided him last year that he has returned the following year to have his

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Mr. Rogers was so pleased with the tax preparation services you provided him last year that he has returned the following year to have his tax return prepared for the year ended December 31, Year 2. In Year 2 (the first full year of operations for Rogers Consulting), John advises you of the following capital asset transactions: - John found that he needed a larger desk, so on March 4 he sold the old desk for proceeds of disposition of $1,000 (originally cost was $1,123 ) and purchased a new desk for $975. 10 - On July 1, John purchased an engineering consultant-specific office management and accounting computer software program that would allow him to better track his business expenses. The computer software cost $2,150. - On September 1, John purchased a small pipeline consulting business called PipeX Consulting for $50,000 (Note: this business was purchased subsequent - On July 1, John purchased an engineering consultant-specific office management and accounting computer software program that would allow him to better track his business expenses. The computer software cost $2,150 - On September 1, John purchased a small pipeline consulting business called PipeX Consulting for $50,000 (Note: this business was purchased subsequent to January 1,2017 ). PipeX Consulting was a very small business with no tangible assets; therefore, the full amount of purchase price is allocated to goodwill. John explained that his strategy behind the purchase of the other consulting business was to acquire the good name and reputation of the business. In addition, John was interested in acquiring the names and contact information for the companies where PipeX regularly provided consulting services, since John lacked contacts or clients in the pipeline industry and wanted to expand his consulting services. Answer the following: 1. Calculate the maximum capital cost allowance deduction that can be claimed for Rogers Consulting for the year as well as the closing undepreciated capital cost balances for each class at the end of Year 2

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