Sheronda has owned and operated her vacuum repair business


Sheronda has owned and operated her vacuum repair business for the last 5 years. She calls her company Sheronda’s Vacuum Cleaner Repair. During 2015, Sheronda received cash receipts from customers totaling $49,000. During 2015, she paid the following expenditures in connection with her business:

            Cost of an engine diagnostic machine (5-year property)                                                      $      26,000

            Cost of new equipment (7-year property)                                                                                     14,000

            Supplies                                                                                                                                          3,000

            Advertising fees                                                                                                                              2,000

            Liability insurance premiums                                                                                                        1,000

For the engine diagnostic machine, Sheronda elected not to expense any portion of the cost allowed under the provisions of § 179, but rather elected to take the maximum allowed depreciation. For the new equipment, Sheronda elected to take § 179 expense. The diagnostic machine plus all the equipment were placed in service on March 1, 2015. The diagnostic machine and equipment are used exclusively for business purposes.

Determine Sheronda's total cost recovery for 2015.

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Financial Accounting: Sheronda has owned and operated her vacuum repair business
Reference No:- TGS01698974

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