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Avery purchased $87000 of new dies ad molds for her tool and die business in June of the current year. They have a 3-year MACRS recovery period. Avery understands that if she elects to use ADS to computer her regular income tax, there will be no difference between the cost recovery for computing the regular income tax and AMT. However, her depreciation deduction will be lower with ADS. Avery wants to know the regular income tax cost, after two years, of using ADS rather than MACRS. Assume she does not elect Sec 179 limited expensing, she does not take additional first-year depreciation and that her MTR is 33%.
palisade creek co. is a merchandising business. the account balances for palisade creek co. as of may 1 2014 unless
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