Question

3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a cost of $2,950,000. White Corporation has taxable income from its business in 2019 of $1,550,000 and elects to expense the maximum amount for the machinery purchase under Section 179 but elects out of bonus depreciation for this purchase. Compute White's allowable expensing deduction under Section 179 and allowable MACRS depreciation for the machinery in 2019 assuming that the machine is the only asset purchased by White during 2019. 4. (5 points) On March 16, 2017, Delta Corporation, a calendar year taxpayer, bought computers and printers (5-year property) for $28,500 which was its only purchase of depreciable assets for that year. On November 25, 2018, Delta bought office furniture (7- year property) for $43,200 which was its only purchase of depreciable assets for that year. On September 20, 2019, Delta sold both the computers and printers purchased in 2018 and the office furniture purchased in 2018. Compute Delta's allowable depreciation for each asset for both the year of purchase and the year of sale assuming that Delta did not elect to expense or take bonus deprecation on either asset.

Answer 1

In case of multiple questions only first will be answered.

year	amt	7 year
1	2950000	14.29%	421555
2	2950000	24.49%	722455
3	2950000	17.49%	515955
4	2950000	12.49%	368455
5	2950000	8.93%	263435
6	2950000	8.92%	263140
7	2950000	8.93%	263435
8	2950000	4.46%	131570