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# Pyle Inc: Recovery deduction and regular depreciation

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Pyle Inc., a calendar year taxpayer, generated over \$10 million taxable income in 2008. Pyle made one asset purchase: transportation equipment costing \$177,150. The equipment has a 5-year recovery period and was placed in service on February 9.

Assuming that Pyle made the Section 179 election with respect to the equipment, compute Pyle's first-year cost recovery deduction.

A. \$128,000
B. \$137,830
C. \$35,430
D. None of the above

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https://brainmass.com/business/depreciation/pyle-inc-recovery-deduction-regular-depreciation-236061

#### Solution Preview

The answer is calculated assuming you are using 2007 Section 179 limits:

MACRS % at 20% for year 1; 32% for year 2, ...

#### Solution Summary

The solution provides the limits in the years 2007 and 2006 and shows all the calculations to arrive at an answer.

\$2.19