During 2019, Belk Corporation purchases $70,000 worth of equipment for use in its business. Belk’s current taxable income before considering the Section 179 deduction is $26,000. Assume that Belk elects not to claim bonus depreciation. If an amount is zero, enter "0". a. Belk could have a Section 179 election in 2019 of $(fill in the blank) , deducting $(fill in the blank) and carrying forward the excess of $(fill in the blank). Or, Belk can elect to deduct $(fill in the blank) and depreciate the equipment, using a basis of $(fill in the blank). b. Belk's 2020 business taxable income—before a Section 179 deduction—is $50,000. If Belk had a carryforward, their Section 179 deduction in 2020 is $(fill in the blank). If Belk chose to depreciate, their Section 179 deduction in 2020 is $(fill in the blank).
During 2019, Belk Corporation purchases $70,000 worth of equipment for use in its business. Belk’s current taxable income before considering the Section 179 deduction is $26,000. Assume that Belk elects not to claim bonus depreciation.
If an amount is zero, enter "0".
a. Belk could have a Section 179 election in 2019 of $(fill in the blank) , deducting $(fill in the blank) and carrying forward the excess of $(fill in the blank). Or, Belk can elect to deduct $(fill in the blank) and
b. Belk's 2020 business taxable income—before a Section 179 deduction—is $50,000. If Belk had a carryforward, their Section 179 deduction in 2020 is $(fill in the blank). If Belk chose to depreciate, their Section 179 deduction in 2020 is $(fill in the blank).
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
