green bank corporation follows a calendar year tax period. during its 2020 tax year, the business purchased the following assets:

*A desk and chair for each employee: purchased on March 15, totaling $300,000

*Desktop computers for each employee: purchased on April 3, totaling $325,000

all of the above property is brand new and has been used entirely for business purposes since its purchase (i.e. does not constitute listed property that has mixed personal and business use).

assume that the taxpayer desires the MAXIMUM total depreciation expense for the year possible. further, assume that the company has sufficient taxable income such that, At Least In Terms Of Taxable Income, there is no binding limitation on any potential Sec. 179 expense.

what is the amount of Sec. 179 expense the taxpayer will claim in 2020? what is the total remaining basis for the assets (after taking the Sec. 179 expense for any assets) that will be used to determine bonus depreciation? the second question is not asking for the amount of bonus depreciation deduction, just the total amount of remaining basisi of the above two assets that will be considered For bonus depreciation.

1. $300,000 Sec. 179 expense. remaining baisi for the two categories of assets in total (desks and chairs + desktop computers) = $250,000

2. $250,000 Sec. 179 expense. remaining baisi for the two categories of assets in total (desks and chairs + desktop computers) = $300,000

3. $0 Sec. 179 expense. remaining baisi for the two categories of assets in total (desks and chairs + desktop computers) = $0

4. $550,000 Sec. 179 expense. remaining baisi for the two categories of assets in total (desks and chairs + desktop computers) = $0

5. $275,000 Sec. 179 expense. remaining baisi for the two categories of assets in total (desks and chairs + desktop computers) = $275,000