Maximum total cost recovery deduction

Assignment Help Financial Management
Reference no: EM131070840

Tessa owns an unincorporated manufacturing business. In 2015, she purchases and places in service $207,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $15,000. Tessa elects to expense the maximum under Sec. 179. What is Tessa's maximum total cost recovery deduction for 2015? Please show explanation.

Reference no: EM131070840

Questions Cloud

Firm expects to have annual operating cash flow : Allied Products, Inc., is considering a new product launch. The firm expects to have annual operating cash flow of $9.2 million for the next 8 years. What is the NPV of the new product? what level of expected cash flows does it make sense to abandon ..
Based on any method for assessing risk : A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision maker should. Increase the IRR of the asset to reflect the greater ..
What is the wacc and should marvel invest in this project : Marvel uses 25% common stock and 75% debt to finance their operations. The after-tax cost of debt is 6 percent and the cost of equity is 15 percent. The management of Marvel is considering an expansion project that costs 1.0 million. what is the wacc..
Debt outstanding and total market value : RAK, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $28,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 percen..
Maximum total cost recovery deduction : Tessa owns an unincorporated manufacturing business. In 2015, she purchases and places in service $207,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $15,000. Tessa..
Using the appropriate cost per capital : Using the appropriate cost per capital to find the NPV and IRR for a project that has $500,000 initial investment, cash flows of $125,000 in the first two years, $150,000 in the years 3 and 4, and $175,000 in years 5 and 6 and a risk premium of 3% Yo..
Long straddle-use figures to demonstrate this strategy : Long Straddle: This strategy is when an investor purchases both a call and put option with the same strike price, underlying asset and expiration date simultaneously. An investor will often use this strategy when he or she believes the price of the u..
What is the effective annual rate of return : You have traditionally ordered an average of 200,000 pounds of per week at a price of $9 per pound. The inventory is stocked in a rental facility that costs $250,000 per annum. The cost is always paid at delivery, whether you are buying week by week ..
Calculate liquidity-profitability and efficiency ratio : As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio ana..

Reviews

Write a Review

Financial Management Questions & Answers

  Using horizontal analysis-comparative reports

In using horizontal analysis, comparative reports are:

  What is the current share price-dividends

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $24, $15, $5.6 and $2.8. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the s..

  What rate of return would they be earning

Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $22,691.00 that will pay them $3,500 per year for 10 years. They don’t have the slightest idea..

  What is the projects payback period

A project has an initial cost of $59,675, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places

  Account earns compounded monthly

How much will you have in an account after 25 years if you put $1300 per month in the account earns 8% compounded monthly?

  What was deltas payout ratio for fiscal year

Delta Corporation earned $2.50 per share during fiscal year 2011 and paid cash dividends of 1.00 per share. During the fiscal year that just ended on December 31, 2012, Delta earned $3.00 per share, and the firm’s managers expect to earn this amount ..

  The average price of an asset

In January 2007, the average price of an asset was $28,658. 8 years earlier, the average price was $22,508. What was the annual increase in selling price?%. One year ago, you invested $3,100.00. Today, it is worth $3,850.00. What rate of interest did..

  Current yield equals its yield to maturity

If a coupon bond is selling at par, its current yield equals its yield to maturity. If a coupon bond is selling at a premium, its current yield equals its yield to maturity. If interest rates increase, the price of a 10-year coupon bond will decline ..

  Two independent projects with the cash flows

You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Given this information, which one of the following statements is correct? You should accept project B since it has the higher IR..

  After-tax cash flows

Find the PI. Cost of capital is 10.2%. The initial outlay is $256, 900. The following after-tax cash flows:

  Common stock an increase in the after-tax cost of debt

All else equal an increase in beta results in? an increase in the cost of retained earnings an increase in the cost of common equity whether or not the funds come from retained earnings or newly issue common stock an increase in the cost of newly iss..

  What would be the monthly payment on the loan

You are thinking about buying a car, and a local bank is willing to lend you $15,000 to buy the car. Under the terms of the loan, it will be paid off over 5 years with an APR of 6%. What would be the monthly payment on the loan? What is the interest ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd