LO.6 In 2010, Muhammad purchased a new computer for $14,000. The computer is used 100% for business. Muhammad did not make a § 179 election with respect to the computer. If Congress reenacts additional first-year depreciation for 2010, he elects not to take additional first-year depreciation. If Muhammad uses the statutory percentage method, determine his cost recovery deduction for 2010 for computing taxable income and for computing his alternative minimum tax.

DECISION MAKING