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    Tax accounting

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    1. Lori, who is single, purchased a new copier (five-year class property) for $30,000 and new furniture
    (seven-year class property) for $112,000 on May 20, 2005. Lori expects the taxable
    income derived from her business (without regard to the amount expensed under § 179)
    to be about $200,000. Lori wants to elect immediate § 179 expensing, but she doesn't
    know which asset she should expense under § 179.
    a. Determine Lori's total deduction if the § 179 expense is first taken with respect to
    the copier.

    b. Determine Lori's total deduction if the § 179 expense is first taken with respect to the
    furniture.

    c. What is your advice to Lori?

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    https://brainmass.com/business/accounting/97930

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    a. Determine Lori's total deduction if the § 179 expense is first taken with respect to the copier.

    Immediate expense deduction under § 179 30,000
    Furniture
    Immediate expense deduction under § 179 75,000 The total deduction is limited to ...

    Solution Summary

    The solution explains the tax deduction under § 179.

    $2.19

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