What is olgas total cost recovery deduction


Olga is the proprietor of a small business. In 2008, thebusiness income, before considering any cost recovery or Sec. 179deduction is $180,000. Olga spends $132,000 for new furniture(7 year property) and elects to take the Sec. 179 deduction on the furniture. Olga's cost recovery deduction for 2008,excepting the cost recovery deduction with respect to thefurniture, is $86,000. Determine Olga's total costrecovery with respect to the furniture and the amount of any Sec.179 carry forward. Assume Olga does not elect the additional50% depreciation allowance. Show your work. Also, what is Olga's total cost recovery deduction, including the Sec. 179election, in 2009, assuming no additional purchases of depreciable assets?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is olgas total cost recovery deduction
Reference No:- TGS0723026

Expected delivery within 24 Hours