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XYZ Inc. acquires specialized computer equipment (a 5-year recovery life asset) on August 10, 2022 for $2,950,000. XYZ Inc. elects 179, but does not elect
XYZ Inc. acquires specialized computer equipment (a 5-year recovery life asset) on August 10, 2022 for $2,950,000. XYZ Inc. elects 179, but does not elect bonus depreciation. XYZ Inc.'s income before consideration of this purchase is $700,000. a. What is XYZ Inc.'s income after consideration of the computer's cost recovery? b. What is the adjusted basis of the computer at the end of 2022? c. What, if any, is the 179 carryover amount?
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