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2. In April 2019, Lenape Corporation completed security, fire, and heating system improvements to existing nonresidential rea
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Solution:

Total cost of qualifying improvement $   1,275,000
Section 179 election 2019 dollar amount $ (1,020,000)
Tax basis recoverable through MACRS $       255,000
First-year MACRS percentage 0.01819
First-year MACRS depreciation $            4,638
Total Cost recovery [1020000+4638] $   1,024,638

Notes:

1) In question it is given that improvement is qualified for Section 179 Deduction and Section 179 deduction is $1,020,000 for the year 2019.

2) Improvement spent in April 2019 and mid month convention for april month is 0.01819.

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