Compute the taxable income

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Reference no: EM1377475

In 2012, Muhammad purchased a latest computer for $16,000. The computer is used 100 percent for business. Muhammad did not make a $179 election with respect to computer. He does not claim additional first-year depreciation.

If needed, round your answers to the nearest dollar.

If Muhammad uses the statutory percentage method, then his cost recovery deduction for 2012 for computing taxable income is $ and for evaluating alternative minimum tax is $ .

Reference no: EM1377475

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