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Accounting

Problem:

Robert is a sole proprietor who uses the calendar year as his tax year. On July 20, 2014 he acquired and placed in service a business machine, a 7-year asset, for $50,000. No other property was acquired in 2014.

Required:

Question 1: What is the amount of depreciation allowed in 2014 and 2015 if Sec.179 depreciation (first year expense election) was not elected?

Question 2: What is the amount of depreciation allowed in 2014 and 2015 if Sec.179 was elected?

Note: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91163606

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