Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Olga is the proprietor of a small business. In 2019, the business's income, before consideration of any cost recovery or 179 deduction, is $250,000. Olga

Olga is the proprietor of a small business. In 2019, the business's 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. Olga's cost recovery deduction for 2019, except for the cost recovery with respect to the new 7-year assets, is $95,000.

a. What is the tentative amount of Olga's overall 179 deduction for the seven-year class assets before any income limitation?

b. What is the total amount of Olga's 179 deduction for the seven-year class assets after any income limitation?

c. What is Olga's total cost recovery depreciation deduction (including any 179 deduction)?

d. What is 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

The ASQ Auditing Handbook

Authors: J. P. Russell,

4th Edition

0873898478, 978-0873898478

More Books

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago