. If 179 expense is first allocated to the seven-year class property, the deduction for the year would be $larger.Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $400,000 on May 20, 2015. Lori expects the taxable income derived from her business (without regard to the amount expensed under 179) to be about $800,000. Lori wants to elect immediate 179 expensing, but she doesnt know which asset she should expense under 179. She does not claim any available additional first-year depreciation.

Note: Assume the 2014 179 amount is extended to 2015.

Click here to accessExhibit 8.1andExhibit 8.4of the textbook.

a. Determine Lori's total deduction if the 179 expense is first taken with respect to the 5-year class asset.

Immediate expense deduction under 179	$
Copier
	Regular MACRS
Furniture
	Regular MACRS
Total deduction	$

b. Determine Lori's total deduction if the 179 expense is first taken with respect to the 7-year class asset.

Immediate expense deduction under 179	$
Copier
	Regular MACRS
Furniture
	Regular MACRS
Total deduction	$

c. If 179 expense is first allocated to the seven-year class property, the deduction for the year would be $larger.