De 10.7 Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2018. Lori expects the taxable income Derived from her business (without regard to the amount expensed under $ 179) to be about $550,000. Lori has determined she should elect immediate 8 179 expens- ing in the amount of $520,000, but she doesn't know which asset she should com- pletely expense under $ 179. She does not claim any available additional first-year depreciation. 2. Determine Lori's total deduction if the $ 179 expense is first taken with respect to the 5-year class asset. b. Determine Lori's total deduction if the $ 179 expense is first taken with respect to the 7-year class asset. c. What is your advice to Lori? d. Assume that Lori is in the 24% marginal tax bracket and that she uses $ 179 on the 7-year asset. Determine the present value of the tax savings from the depreciation deductions for both assets. See Appendix F for present value fac- tors, and assume a 6% discount rate. e. Assume the same facts as in part (d), except that Lori decides not to use 179 on either asset. Determine the present value of the tax savings under this choice. In addition, determine which option Lori should choose