Example: Started year with $100 in assets. Bought car for business, cost $35000. Want to take max depreciation deduction of $17,100, leaving assets totaling $18,000.
Business owes $30,000. No equity in business - it's an all-cash service business, so no goods sold, etc. Simply using profit of business as additional income.
Assets of $18,000, liabilities of $30,000. In order to make balance sheet balance, how do I account for the $12,000 difference? Thanks very much for any help you can provide.
