Depreciation and Amortization 8-33 10. MACRS, Section 179. (Objs. 1 and 2) The Redwood Company, a calendar-year corporation, acquired the following new properties. Item Copier Cost $ 28,000 Date Acquired March 1, 2021 Furniture Equipment Warehouse 84,000 June 1, 2021 540,000 June 30, 2021 110,250 July 9, 2021 a. Compute the maximum depreciation deduction that Redwood can take in 2021 and 2022 on each of these properties assuming one-half of the cost of each qualifying property was expensed under section 179 and an election out of bonus depreciation was made for each property class. Assume the equipment is 7-year property. b. Assume that Redwood elects the maximum allowed Section 179 expense on the equipment acquired on June 30, 2021, and that the equipment costs $1,200,000. The company uses bbonus depreciation and regular MACRS to depreciate the rest of the cost. Redwood's business income limitation (taxable income before Section 179 expense, but after all other expenses, including depreciation) is $950,000. Compute the maximum total depreciation deduction (179, bonus, and regular depreciation) for the equipment for 2021.