in june 2011kelly purchased new equipment for


In June 2011,Kelly purchased new equipment for $26000 to be used in her business.Assuming Kelly has net income from her business of $75000 prior to the deduction,what is the maximum amount of the cost recovery Kelly can deduct rounded to the nearest $,assuming she does NOT elect #179 expense or bonus depr? 
a) 3715 
b) 13000 
c) 14858 
d) 26000 
I can count that cost recovery for her equipment is 3715,but what's the point of 75000 income and words "maximum amount"? Can somebody help me to figure it out? I don't need just the answer but want to understand how to calculate it.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: in june 2011kelly purchased new equipment for
Reference No:- TGS0411311

Expected delivery within 24 Hours