Loni Company paid $1,067,000 for tangible personalty in 2021 and elected to expense $1,050,000 of the cost (the limited dollar amount for 2021). Loni’s taxable income before a Section 179 deduction was $894,100. Loni paid $23,700 for tangible personalty in 2022 and elected to expense the entire cost. Loni’s taxable income before a Section 179 deduction was $228,000.
a. Compute Loni’s Section 179 deduction and taxable income for 2021.
b. Compute Loni’s Section 179 deduction and taxable income for 2022.