A Corporation follows a calendar year tax period. During its 2018 tax year, the business purchased the following assets:

A desk and chair for each employee: purchased on March 15, total $400,000.

Desktop computers for each employee: purchased on April 3, total $500,000.

All of the above property is brand new and has been used entirely for business purposes since its purchase

(i.e., does not constitute listed property that has mixed personal and business use).

Assume that the taxpayer desires themaximum total depreciation expense for the year possible under the specific, separate details for each of the below.

Further, assume that the company has sufficient taxable income such that,at least in terms of taxable income, there is no binding limitation on any potential Sec. 179 expense.

• What is the amount of Sec. 179 expense the taxpayer will claim in 2018?
• What is the total remaining basis for the assets (after taking the Sec. 179 expense for any assets) that will be used to determine bonus depreciation?
• How will the answers above change if the taxpayer claimed NO Sec 179 expense in 2018?