Assume FTN Corporation (calendar year end) has 2020 taxable income of $500,000 for purposes of computing the 179 expense. During 2020, FTN acquired the following assets:

Asset		Placed in Service	Basis
Machinery		August 12	$2,550,000
Computer Equipment		February 10	365,000
Office Furniture		April 2	480,000

Determine FTNs maximum cost recovery under the following situations:

(a) FTN opts out of bonus depreciation but elects 179

Total Maximum Cost Recovery for 2020

(b) FTN does NOT opt out of bonus depreciation.

Total Maximum Cost Recovery for 2020