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Answer:
Follows are the solution to the given points:
Explanation:
In point a:
It must allocate [tex]\$19000[/tex] for both the taxicab and [tex]\$41,000[/tex] for the rest of the license, the client list, and the company name registered.
Its cost of intangible material could be amortized for 180 months starting in April. [tex](\frac{41,000}{180}) \times 9\ \ months = \$2,050[/tex] is her amortization deduction.
She could also use Section 179 to decrease her taxable money to [tex]\$17,890 (\$36,890 - \$19,000)[/tex] but include her deduction.
Her taxable annual income is [tex]\$15,840 (\$17,890 - \$2,050)[/tex].
In point b:
They must allocate [tex]\$19,000[/tex] for the taxi and[tex]\$41,000[/tex] for their licenses, the customer list as well as the business by interacting with people register. Its cost of the material could be depreciated for 180 months, starting in April.
[tex](\frac{41,000}{180}) \times 9\ \ months = \$2,050[/tex] is her amortization deduction.
The taxable income here [tex]= \$0 (from \ \$17,100 -\$19,000) = -1,900.[/tex]
Section 179 could be requested if another income is earned on the tax return (such as W-2 wages).
As all Section 179 is unpaid with other earned income, it is carried forward into the next year.