Business equipment eligible for section

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Reference no: EM131188099

A small business has a taxable income of $95,650 this year, and has purchased $118,450 of business equipment eligible for a section 179 deduction. What is the maximum section 179 deduction that can be taken? Taking this deduction, what is the year 1 depreciation for the equipment? What is the end-of-year book value? Use the MACRS rates listed below.

Year 1: 20%; Year 2: 32%; Year 3: 19.2%; Year 4: 11.52%; Year 5: 11.52%; Year 6: 5.76%.

Reference no: EM131188099

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