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31 January, 09:02

In june 2016, kelly purchased new equipment for $26,000 to be used in her business. assuming kelly has net income from her business of $75,000 prior to the deduction, what is the maximum amount of cost recovery kelly can deduct rounded to the nearest dollar, assuming she does not elect §179 expense or bonus depreciation

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  1. 31 January, 09:17
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    The answer is " $14,858".

    this is how we calculate this;

    She purchased new equipment for = $26,000

    ($26,000 * 50% bonus) + ($13,000 * 14.29%)

    =13,000 + 1857.7

    = $14,857.7 = $14,858
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