Lars acquired a new network system on June 5, 2021 (five-year class property), for $62,000. She expects taxable income from the business will always be about $180,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2021 for $360,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2021.
Lars acquired a new network system on June 5, 2021 (five-year class property), for $62,000. She expects taxable income from the business will always be about $180,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2021 for $360,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2021.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 53P
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Q.26.
Lars acquired a new network system on June 5, 2021 (five-year class property), for $62,000. She expects taxable income from the business will always be about $180,000 without regard to the §179 election. Lars will elect §179 expensing. She also acquired seven-year property in July 2021 for $360,000. (Use Table 6A-1) Required: Determine Lars’s maximum cost recovery deduction with respect to her purchases in 2021.
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