During the year 2021, 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 $2,200,000

For 2021, Marvelous Munchies has taxable income equal to $810,000 unless you are told differently in a question below. Each scenario below is independent of the others unless you are told otherwise in the question.

a. What is the maximum depreciation that may be deducted for the assets this year, 2021, assuming Sec. 179 expensing and bonus depreciation are not claimed?

b. What is the maximum Sec. 179 deduction allowed for 2021 assuming that Sec. 179 is elected for the October 9 property?

c. If the taxpayer elects Section 179 for $1,050,000 of the October 9th equipment, then how much Sec. 179 carryover will pass to the next tax year using the facts from b. above?

d. What is the maximum depreciation that may be deducted for the assets this year, 2021, assuming both Sec. 179 expensing and bonus depreciation are claimed?