A. Eva purchased office equipment (7-year property) for use in her business. She paid $12,600 for the equipment on July 1, 2018. Eva did not purchase any other property during the year. For 2018, her business had net income of $6,000, before depreciation on the office equipment and before considering the election to expense. Eva elects out of bonus depreciation.

1) What is the maximum amount that Eva can elect to expense in 2018 under Section 179? Explain.

2) Assuming that Eva elected to expense the equipment in 2018 and that her business has net income in 2019 of $200,000, before depreciation and before considering the election to expense, what is Eva's total depreciation deduction (regular depreciation and the amount allowed under the election to expense) for the equipment for 2019?

B. Patrick purchased a used passenger automobile on June 1, 2018. He paid $19,000 for the automobile. During 2018, he uses the automobile 75 percent of the time for business. Patrick wishes to claim the maximum amount of depreciation possible (no bonus depreciation or election to expense). Calculate Patrick's depreciation expense on the automobile for 2018. Please Show Work.