On may 2, 2019, karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. the vehicle is used 60% for business and 40% for personal use. determine karen's total cost recovery for 2019. karen wants to use both §179 and additional first-year depreciation.

Total Cost of Recovery = $27200

Explanation:

Cost of business Use = 60%*60000 = $36000

As per section 179

Depreciation capped at $25,000 for SUVs, trucks, and vans with a gross vehicle weight rating of more than 6,000

Depreciation = $25000

As per MACRS

Additional First-year depreciation = (36000-25000)*0.20 = $2200

Total Cost of Recovery = $25000+$2200 = $27200

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.