In june 2011kelly purchased new equipment for 26000 to be, Ask an Expert

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In June 2011,Kelly purchased new equipment for $26000 to be used in her business.Assuming Kelly has net income from her business of $75000 prior to the deduction,what is the maximum amount of the cost recovery Kelly can deduct rounded to the nearest $,assuming she does NOT elect #179 expense or bonus depr?
a) 3715
b) 13000
c) 14858
d) 26000
I can count that cost recovery for her equipment is 3715,but what's the point of 75000 income and words "maximum amount"? Can somebody help me to figure it out? I don't need just the answer but want to understand how to calculate it.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9628301

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