Michael is the sole proprietor of a small business. In June 2020, his business income is $8,300 before consideration of any $179 deduction. He spends $215,500 on furniture and equipment in 2020. If Michael elects to take the S179 deduction and no bonus on a conference table that cost $21,700 (included in the $215,500 total). (Use Table GA-1 and Table 6A-2) Required: Determine the maximum cost recovery for 2020 with respect to the conference table: (Round your intermediate calculations to the nearest whole dollar amount.)
Michael is the sole proprietor of a small business. In June 2020, his business income is $8,300 before consideration of any $179 deduction. He spends $215,500 on furniture and equipment in 2020. If Michael elects to take the S179 deduction and no bonus on a conference table that cost $21,700 (included in the $215,500 total). (Use Table GA-1 and Table 6A-2) Required: Determine the maximum cost recovery for 2020 with respect to the conference table: (Round your intermediate calculations to the nearest whole dollar amount.)
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:Michael is the sole proprietor of a small business. In June 2020, his business income is $8,300 before consideration of any $179
deduction. He spends $215,500 on furniture and equipment in 2020. If Michael elects to take the 5179 deduction and no bonus on a
conference table that cost $21,700 (included in the $215,500 total). (Use Table 6A-1 and Table 6A-2)
Required:
Determine the maximum cost recovery for 2020 with respect to the conference table: (Round your intermediate calculations to the
nearest whole dollar amount.)
Maximum cost recovery
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