Transaction Increase (Decrease) Increase (Decrease) a. Roalized gain of s80,000 on involuntary conversion of building ($10,00010,000 of gain is recognized). b. Mining exploration costs incurred on May 1 of current year; $24,000 is -24,000 22,400 22,400 deductible from current-year taxable income. Sale of equipment to unrelated third party for $240,000; basis is $120,000 (no election out of installment method; no payments are recelved in current year). Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction (assjime that taxable income limit does not c. d. 6,000 X 14,000 apply) Additional first-year (bonus) depreciation of $45,000 claimed in current year. Section 179 expense deduction of $25,000 in current year. e. 45,000X 45,000 | r. -100,000 | x 80,000X -20,000X -10,000 g. Impact of current-year $ 179 expense deduction in succeeding year. 1 ] h. MACRS depreciation of $80,000. ADS depreciation would have been $90,000. 80,000 V I. Federal incorhe taxes of $80,000 paid in current year. -80,000