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Eduardo is a single taxpayer with a farming operation that suffered a net loss of $30,000 in 2017.In addition,he earned $50,000 from his accounting firm.Eduardo purchased $50,000 of equipment for his farm.He wants to maximize his cost recovery deduction and believes the Section 179 election will help achieve that goal.What is the amount of the maximum Section 179 deduction Eduardo can use? Explain the optimum approach to attain his goal.Assume Eduardo's total taxable business income in 2018 will be $60,000,and he plans to add about $20,000 of equipment to the farm operation.
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The ability to understand the inner nature of things or to gain an intuitive understanding of complex situations or problems.
Algorithm
A set of rules or a step-by-step process designed to perform a specific task or solve a particular problem.
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A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than an algorithm.
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