Nicholas owns a computer service and operates it as a sole proprietorship. In 2022, taxable income is $147,000 before considering any section 179 deduction. Nicholas spends $2,960,000 on new equipment. • For 2022, a married couple has an NOL of $37,000 and no other carryover from prior years. In 2023, the taxpayers have taxable income of $40,000 before considering the 2022 NOL carryover. Determine Nicholas' section 179 deduction carryforward and married couple's NOL carryover (if any) that they can take to 2024. O $260,000 and $5,000 O $147,000 and $3,000 O $147,000 and $8,000 O $673,000 and $0 O $673,000 and $5,000 O $260,000 and $2,000
Nicholas owns a computer service and operates it as a sole proprietorship. In 2022, taxable income is $147,000 before considering any section 179 deduction. Nicholas spends $2,960,000 on new equipment. • For 2022, a married couple has an NOL of $37,000 and no other carryover from prior years. In 2023, the taxpayers have taxable income of $40,000 before considering the 2022 NOL carryover. Determine Nicholas' section 179 deduction carryforward and married couple's NOL carryover (if any) that they can take to 2024. O $260,000 and $5,000 O $147,000 and $3,000 O $147,000 and $8,000 O $673,000 and $0 O $673,000 and $5,000 O $260,000 and $2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q10.
Transcribed Image Text:• Nicholas owns a computer service and operates it as a sole proprietorship. In 2022, taxable income is $147,000 before considering any section 179 deduction.
Nicholas spends $2,960,000 on new equipment.
• For 2022, a married couple has an NOL of $37,000 and no other carryover from prior years. In 2023, the taxpayers have taxable income of $40,000 before
considering the 2022 NOL carryover.
Determine Nicholas' section 179 deduction carryforward and married couple's NOL carryover (if any) that they can take to 2024.
O $260,000 and $5,000
O $147,000 and $3,000
O $147,000 and $8,000
O $673,000 and $0
O $673,000 and $5,000
O $260,000 and $2,000
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