Question:
Olga is the proprietor of a small business. In 2014, the business's income, before consideration of any cost recovery or § 179 deduction, is $104,000.
Olga spends $40,000 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 2014, except for the cost recovery with respect to the new 7-year assets, is $86,000.
Note: If required, round your answers to the nearest dollar.
a. What is the tentative amount of Olga's overall § 179 deduction for the seven-year class assets before any income limitation? $
b. Olga's cost recovery amount (excluding any § 179 deduction) for the seven-year class assets is $ .
c. The total amount of Olga's § 179 deduction for the seven-year class assets after any income limitation is $ .
d. Olga's total cost recovery depreciation deduction (including any § 179 deduction) is $ .
e. What is the amount of any § 179 carryforward?