Firefly, Inc., acquires business equipment in July 2021 for $2,605,000. Assume that Firefly elects not to claim

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Firefly, Inc., acquires business equipment in July 2021 for $2,605,000. Assume that Firefly elects not to claim bonus depreciation.
a. What is Firefly's maximum Section 179 deduction for 2021? Explain.

b. What happens to any portion of the annual limit not deducted in 2021? Explain.

c. What is the depreciable basis of the equipment? Explain.

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Concepts In Federal Taxation 2022

ISBN: 9780357515785

29th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Sep 06, 2023 08:34 AM

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Firefly, Inc., acquires business equipment in July 2021 for $2,605,000. Assume that Firefly elects not to claim

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a The Section 179 deduction is 1050000 Because Firefly a...View the full answer

Concepts In Federal Taxation 2022

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