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Ursula worked for a motorcycle repair company for almost 20 years. However, in the fall of 2016, she had an argument with her boss and

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Ursula worked for a motorcycle repair company for almost 20 years. However, in the fall of 2016, she had an argument with her boss and quit. During January 2017- March 2017, Ursula spent $51,000 exploring the feasibility of starting a motorcycle repair business. Ursula chooses to take the maximum allowed deduction in 2017 pertaining to the start-up costs. The new company commenced operations on April 1, 2017. Ursula calls her company Motorcycle Momma's Repair re Shop. During 2017, Ursula received cash receipts from customers totaling $59,000. During 2017, she paid the foliowing expenditures in connection with her business: Cost of a machine (6-year property) Cost of new equipment (7-year property) Supplies Advertising fees Liability insurance premiums S 30,000 14,000 3,000 2,000 1,000 For the new equipment, Ursula elected not to expense any portion of the cost allowed under the provisions of s 179, but rather elected to take the maximum allowed depreciation. For the machine, Ursula elected to take 179 expense. The machine plus all the equipment were placed in service on April 1, 2017. The machine and equipment are used exclusively for business purposes Ursula worked for a motorcycle repair company for almost 20 years. However, in the fall of 2016, she had an argument with her boss and quit. During January 2017- March 2017, Ursula spent $51,000 exploring the feasibility of starting a motorcycle repair business. Ursula chooses to take the maximum allowed deduction in 2017 pertaining to the start-up costs. The new company commenced operations on April 1, 2017. Ursula calls her company Motorcycle Momma's Repair re Shop. During 2017, Ursula received cash receipts from customers totaling $59,000. During 2017, she paid the foliowing expenditures in connection with her business: Cost of a machine (6-year property) Cost of new equipment (7-year property) Supplies Advertising fees Liability insurance premiums S 30,000 14,000 3,000 2,000 1,000 For the new equipment, Ursula elected not to expense any portion of the cost allowed under the provisions of s 179, but rather elected to take the maximum allowed depreciation. For the machine, Ursula elected to take 179 expense. The machine plus all the equipment were placed in service on April 1, 2017. The machine and equipment are used exclusively for business purposes

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