Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on February 2, 2020 at a cost of $15,000. It does not purchase or place into service any other assets during either 2019 or 2020. The corporation does not elect IRC Section 179 and elects out of first-year bonus depreciation. The corporation has taxable income, before any IRC Sect. 179 deduction, of $3.1 million for the year. What is the total amount of cost recovery deductions that the corporation can take on the desk, if any, for 2019, 2020 and 2021?

Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on February 2, 2020 at a cost of $15,000. It does not purchase or place into service any other assets during either 2019 or 2020. The corporation does not elect IRC Section 179 and elects out of first-year bonus depreciation. The corporation has taxable income, before any IRC Sect. 179 deduction, of $3.1 million for the year. What is the total amount of cost recovery deductions that the corporation can take on the desk, if any, for 2019, 2020 and 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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