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Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? 2$ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?

Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? 2$ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?

FINANCIAL ACCOUNTING
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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Problem 8-39 (LO. 2, 3) Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? $ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?
Transcribed Image Text:Problem 8-39 (LO. 2, 3) Olga is the proprietor of a small business. In 2020, the business's income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets and elects to take the § 179 deduction on them. She does not claim any available additional first-year depreciation. Olga's cost recovery deduction for 2020, except for the cost recovery with respect to the new 7-year assets, is $95,000. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? $ b. What is the total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation?
c. What is Olga's total cost recovery depreciation deduction (including any § 179 deduction)? $ d. What is the amount of any § 179 carryforward? $ %24
Transcribed Image Text:c. What is Olga's total cost recovery depreciation deduction (including any § 179 deduction)? $ d. What is the amount of any § 179 carryforward? $ %24
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