LO.6 Olga is the proprietor of a small business. In 2010, the business income, before consideration of

Question:

LO.6 Olga is the proprietor of a small business. In 2010, the business income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $850,000 on new seven-year class assets and elects to take the § 179 deduction on them. If Congress reenacts additional first-year depreciation for 2010, she elects not to take additional firstyear depreciation. Olga’s cost recovery deduction for 2010, except for the cost recovery with respect to the new seven-year assets, is $95,000. Determine Olga’s total cost recovery for 2010 with respect to the seven-year class assets and the amount of any § 179 carryforward.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South Western Federal Taxation 2011 Taxation Of Business Entities

ISBN: 9780538498616

14th Edition

Authors: James E. Smith, William A. Raabe, David M. Maloney

Question Posted: