Lori, who is single purchased 3-year class property for $100,000, 5-year property for $200,000 and 7-year class property for $400,000 on May 1, 2021. She doesn’t want to claim any cost recovery deductions using additional first year depreciation or Section 179. Lori’s net income from her business for 2021 is $250,000. 1.Compute Lori’s MACRS cost recovery deduction for 2021.



2.Now assume that Lori wants to elect additional first year depreciation in addition to the MACRS cost recovery deduction computed in Part 1 above. Re-compute Lori’s cost recovery deduction for 2021, starting with the amount you calculated in Part 1 above.



3.Now assume that Lori would like to take advantage of IRC Section 179 without considering additional 1st year depreciation. Calculate Lori’s cost recovery deduction using Section 179 and the amount of any Section 179 carryforward.

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2