John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business: Asset Office Furniture Computer System Date of Purchase 5/1/2019 9/15/2020 Cost $100,000 $400,000 In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he always elected to recover 50% of the cost of the asset through the section 179 deduction. However, starting in 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations.

John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business: Asset Office Furniture Computer System Date of Purchase 5/1/2019 9/15/2020 Cost $100,000 $400,000 In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he always elected to recover 50% of the cost of the asset through the section 179 deduction. However, starting in 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 43P

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