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Andre purchased $80,000 of equipment for use in his sole proprietorship on January 15, 2019....

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Accounting

Andre purchased $80,000 of equipment for use in his sole proprietorship on January 15, 2019. The equipment was 7-year recovery property. Andres marginal tax rate is 32%.

a. Compute Andres maximum cost recovery with respect to the equipment for 2019, assuming this is his only equipment acquisition.

b. Compute Andres net cash flow attributable to the equipment in 2019.

c. What is Andres adjusted basis in the equipment on December 31, 2019?

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