Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Olga is the proprietor of a small business. In 2018, the businesss income, before consideration of any cost recovery or 179 deduction, is $250,000. Olga

Olga is the proprietor of a small business. In 2018, 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 2018, except for the cost recovery with respect to the new 7-year assets, is $95,000. Determine Olgas total cost recovery for 2018 with respect to the 7-year class assets and 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

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

4th Edition

0324069731, 978-0324069730

More Books

Students also viewed these Accounting questions