Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Olga is the proprietor of a small business. In 2021, the business's income, before consideration of any cost recovery or 179 deduction, is $250,000.

image text in transcribed

Olga is the proprietor of a small business. In 2021, 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 5 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2021, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall 179 deduction for the seven-year class assets before any income limitation? 95,000 X b. What is the total amount of Olga's 179 deduction for the seven-year class assets after any income limitation? 250,000 X c. What is Olga's total cost recovery depreciation deduction (including any 179 deduction)? 95,000 X d. What is the amount of any 5 179 carryforward? 705,000 X

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

Principles of Fraud Examination

Authors: Joseph T. Wells

4th edition

1118922344, 9781118803264, 1118582888, 9781118922347, 1118803264, 978-1118582886

More Books

Students also viewed these Accounting questions

Question

Explain why difference estimation is commonly used by auditors.

Answered: 1 week ago

Question

What is a role model? (p. 8)

Answered: 1 week ago

Question

i need correct answrrs 6 4 9 . .

Answered: 1 week ago