Multilink Inc. has a December 31 year end. In January, 2020, Multilink Inc. acquires five photocopiers at a cost of $5,500 each. In December, 2020, two of these photocopiers are upgraded for newer models. The new photocopiers cost $6,000 each, and the Company receives an upgrade allowance for each old photocopier of $2,000. Indicate the amount(s)that would be deducted from 2020 business income if no election is made to put each photocopier in a separate class. Contrast this with the deduction(s)that would be available if the separate class election is used.

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The Answer of Multilink Inc. has a December 31 year end. In January, 2020, Multilink Inc. acquires five photocopiers at a cost of $5,500 each. In December, 2020, two of these photocopiers are upgraded for newer models. The new photocopiers cost $6,000 each, and the Company receives an upgrade allowance for each old photocopier of $2,000. Indicate the amount(s)that would be deducted from 2020 business income if no election is made to put each photocopier in a separate class. Contrast this with the deduction(s)that would be available if the separate class election is used.