Elizabeth owns a medical diagnostic imaging business that she operates as a sole

proprietor. On January 3, 2023, she purchased and placed in service a sophisticated piece of new imaging equipment costing 2.5 million. She used 500K of her own money and borrowed the

other 2 million. Assume equipment is 5-year property under 168 and is the only

depreciable property Elizabeth placed in service in her business in 2023. Elizabeth's

taxable income for 2023 computed without regard to any deductions allowable with

respect to the equipment was 3 million. In answering the questions below, disregard inflation adjustments. Thus, assume the maximum deduction under 179(a) is $1,000,000.

(a) Disregarding 179 and assuming Elizabeth does not elect out of 168(k), how much of the cost of the new equipment may Elizabeth deduct in 2023? What will Elizabeth's adjusted basis in the equipment be at the beginning of 2024 depreciation may L claim with respect to the new equipment in Year 1?

(b) How would your answers to (a) change if Elizabeth elected out of 168(k)?

(c) How would your answer to (b) change if Elizabeth purchased the equipment on December 1, 2023, instead of January 3, 2023?

(d) How much would Elizabeth's 168 depreciation deduction be in 2023 if she elected to take maximum advantage of 179 expensing and did not elect out of 168(k)?

(e) How would your answer to (d) change if Elizabeth elected out of 168(k)?

(f) How would your answers to (a) - (e) change if the equipment were used when Elizabeth purchased it?

NOTE: Please include code cites and how you got to your answer (tables used for calculation, etc.)