Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 40

Michael is the sole proprietor of a small business. In June 2010 his business income is $12,000 before consideration of any §179 deduction. He spends $245,000 on furniture and equipment in 2010. If Michael elects to take the §179 deduction on a conference table that cost $25,000 (included in the $245,000 total), determine the maximum cost recovery for 2010 with respect to the conference table: