Robert is a sole proprietor who uses the calendar year as his tax year. On July 20, 2016 he acquired and placed in service a business machine, a 7-year asset, for $50,000. No other property was acquired in 2016. Robert elects out of bonus depreciation.
a. What is the amount of depreciation allowed in 2016 and 2017 if Sec. 179 depreciation (firstyear expense election) was not elected?
b. What is the amount of depreciation allowed in 2016 and 2017 if Sec. 179 was elected?