Share
Explore BrainMass

# Combined Depreciation

6. Answer_____________ Michelle has an advertising business that she reports on Schedule C of her personal tax return. On May 1, 2006, Michelle purchased a Toyota Camry for \$22,000. She purchased a copier for \$30,000 on October 15th and office furniture for \$50,000 on November 1st. All assets acquired are new. The Camry is used 90% for business. Her income before depreciation and Section 179 expense is \$250,000. If she wants to maximize her deductions in 2006, what is the maximum combined depreciation and Section 179 deduction?

a. \$82,664
b. \$82,960
c. \$99,800
d. \$102,000

#### Solution Preview

Full Sec 179 can be taken for both the copier and the office furniture, Sec 179 is ...

#### Solution Summary

6. Answer_____________ Michelle has an advertising business that she reports on Schedule C of her personal tax return. On May 1, 2006, Michelle purchased a Toyota Camry for \$22,000. She purchased a copier for \$30,000 on October 15th and office furniture for \$50,000 on November 1st. All assets acquired are new. The Camry is used 90% for business. Her income before depreciation and Section 179 expense is \$250,000. If she wants to maximize her deductions in 2006, what is the maximum combined depreciation and Section 179 deduction?

\$2.19