During the year 2020, a calendar-year taxpayer, Marvelous Munchies, a chain of specialty food shops, purchased equipment as follows:

Date. Asset ___ _ Cost___

March 3. 5 Year Property $600,000

October 9 5 Year Property $2,000,000

For 2020, Marvelous Munchies has taxable income equal to $910,000. Each scenario below is independent of the others unless you are told otherwise in the question

1. What is the maximum depreciation that may be deducted for the assets this year, 2020, assuming Sec. 179 expensing and bonus depreciation are not claimed?

2. What is the maximum Sec. 179 deduction allowed for 2020 assuming that Sec. 179 is elected?

3. If the taxpayers taxable income was $610,000 rather than $910,000, how much Sec. 179 carryover would pass to the next tax year using the facts from question 2, above?

4. What is the maximum depreciation that may be deducted for the assets this year, 2020, assuming both Sec. 179 expensing and bonus depreciation are claimed?